Credit risk analysis and credit scoring--now and in the future.(Cover Story)

Computers and the Internet have dramatically changed the way business is conducted, and credit departments are no exception. Credit risk analysis, through the use of credit scoring models, is becoming more automated with the use of computers and the utilization of the Internet to obtain and compile financial data. Credit scoring provides a way to quickly and easily numerically rate a company's credit risk so that assessments of individual buyers, or those in the same industry, are made on the same criteria. Automated credit scoring also has the advantage of reducing manpower by eliminating accounts that don't need individual review. This is becoming increasingly important ...