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Policies

Overview

A policy is a set of decision rules that are written using data elements, features, models, framework output metrics and framework valuation functions.

How is this used?

A policy is used to make business decisions. For instance, a policy can be used to make loan underwriting decisions, prospects solicitation decisions or customer cross-selling decisions.

Policies are product specific and their outcome usually consist in assigning values to a product parameter (e.g., what interest rate to set for a given loan)

Creating a Policy

To create a policy Users need to first decide what type of business policy they are trying to register (Prospecting, Underwriting, or Customer Management ) navigate to the corresponding module, and click on Create within the Policy Registry page.

Example

Case study: User wants to create a policy that makes loan approval decisions and interest rate assignment decisions for a 36-months installment loan. We assume that the 36-month installment loan has already been registered and that all the objects that will be used to write the rules of the policy have already been created.

  • Go to Underwriting and click on Create within the Policy Registry tab

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  • Start filling in the policy details

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  • Fill the Offer Creation tab to specify the product configuration parameters to assign values during the policy execution

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  • Specify in the Model Suite tab what model(s) will be used to write rules (if any)

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  • Specify the rules for approving a loan (Approval strategy)

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  • Specify the rules for assigning a price to a loan (Pricing strategy)

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  • Test the entire policy by running a Single Record Review

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