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Applying statistical methods to the loss reserve calculation: who doesn't want a 1,000% ROI on a six-month project? (Selected Topic).

Business Credit

| March 01, 2003 | Connors, Michael; Bona, Stephen | COPYRIGHT 2003 National Association of Credit Management. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

This article addresses an opportunity in the utility industry for significant benefits, Building on the concepts put forth in "Scoring the Account Lifecycle," this article will articulate why a company should take the logical next step beyond the use of statistically based behavioral scoring for risk analysis and collection treatment strategies to the use of statistical methods for loss reserve calculation. The good news is that your organization can implement this methodology even if you're not yet using behavioral scoring. Scoring for customer treatment purposes will be an outgrowth of the reserve methodology analysis and development.

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Source: HighBeam Research, Applying statistical methods to the loss reserve calculation: who...