Introduction to complex scorecards

Complex scorecards are multiple scorecards within one ruleflow. The properties of the complex scorecard are applied to all the scorecards associated with it.

Complex scorecards are multiple scorecards within one ruleflow. The ruleflow identifies the dependencies, flow, and order in which the score from each scorecard is included in the overall score. Complex scorecards are also known as nested or segmented scorecards.

Each of the individual scorecards in a complex scorecard is designed by a business analyst. The business analyst develops a ruleflow, defines the order and the decision nodes between scorecards in the ruleflow, and defines the complex scorecard properties. The properties of the complex scorecard are applied to all the scorecards associated with it.

You can base segmentation on the following:

Demographic data

For example, an online retail company designs and implements scoring models to determine credit risk. The online company wants to implement scorecards with the following attributes: age, number of items sold, total value of the items sold, income, number of items sold with this company previously. The score will be calculated with defined ranges. The company must therefore create different scorecards based on different geographical regions (northeast, northwest, southeast, southwest) with the same attributes and ranges, but with different scores for each.

Data availability

For example, a bank has developed scorecards based on the data that their customers provide. One scorecard, based on a common set of attributes and ranges, is applied to all possible customers. However, if the customer completes an additional section of the form to indicate that another person is also signing for the loan, or that they are applying for a different loan, different scorecards must be run and the scores combined.