article thumbnail

Addressing Portfolio Risk in Economic Uncertainty: Part 2 (2022)

FICO Blog

FICO® Scores, often an important contributor to underwriting risk management strategies, are designed to provide valuable risk rank-ordering through all economic cycles. Default rates by FICO® Auto Score 8 and FICO® Resilience Index 2 – stressed economy (Oct 2007 to Oct 2009).

Default 52
article thumbnail

Assessing the Impact of COVID 19 on Liquidity Needs

Abrigo

Let’s focus on the financial risks we don’t control and assess the risk. During the crisis in 2009, the banking system saw shockwaves hit, causing a number of bank closures. This liquidity drain was, in most cases, a direct result of increased credit risk and funding sources used to grow the banks. learn more.