The Credit Risk Model Validation team validates the models employed for managing
the credit risks associated with leasing activities of Ford cars. The scope of
this validation team includes a variety of models (PD, LGD, EAD), application
and collection scorecard models for different product types. The validator in
this team has a key role of: • assessing the quality of the data used for the
development of the model; • examining the correctness of the methodology and
assumptions; • challenging the correctness of the implementation of the model; •
forming independent opinion on the model's performance; • ensuring involvement
of all the relevant parties in the development process; • assessing the
compliance of the model with respect to internal and external regulations; •




checking the final implementation of the model in the production setting;
The team examines, verifies and challenges various modelling techniques scaling
from logistic regressions and time-series analysis to Monte-Carlo simulations
and machine learning techniques. The validators often employ those for building
challenger models as an alternative to the methods proposed by Modelling. By
analyzing the key components of the model the validator identify issues,
proposes improvement opportunities, identifies the model risk and shares the
result with relevant parties. The team creates high quality validation reports
and provides them to the senior management as well as to other key stakeholders.

📌 Credit Risk Modeler (India)
🏢 Ford Motor
📍 India