People who are good at calculating probability and risk are few and far ... Continue reading

# Risk Management

## Predictive Modelling: Comparing Model Re …

AUC for each model and their performance when we set probability cutoff at ... Continue reading

## Extreme Gradient Boosting in R …

Extreme Gradient Boosting has a very efficient implementation. Unlike SVM ... Continue reading

## Random Forest Model in R …

Now, we will tune RandomForest model. Like SVM, we tune parameter based on ... Continue reading

## Support Vector Machine (SVM) Model in R …

A support vector machine (SVM) is a supervised learning technique that ... Continue reading

## Credit Risk – Logistic Regression …

To build our first model, we will tune Logistic Regression to our training ... Continue reading

## Building Credit Risk Model …

The loan data typically have a higher proportion of good loans. We can ... Continue reading

## Create a Function and Prepare Test Data …

When we build the model, we will need the same set of columns in the test ... Continue reading

## Remove Dimensions By Fitting Logistic Re …

We will use the preProcess function from ... Continue reading

## Data Cleaning in R – Part 5 …

Numeric Features Let’s look at all numeric features we have left. We ... Continue reading

## Data Cleaning in R – Part 3 …

Default by States We take a look at default rate for each state. We ... Continue reading

## Data Cleaning in R – Part 2 …

Attributes with Zero Variance Datasets can sometimes contain attributes ... Continue reading

## Data Cleaning in R – Part 1 …

Discarding Attributes LendingClub also provides a data dictionary that ... Continue reading

## Loan Data – Training and Test Data …

For building the model, we will divide our data into two different data ... Continue reading

## Explore Loan Data in R – Loan Gra …

There is no set path to how one would go about analyzing a data set. ... Continue reading

## Explore Financial Data in R …

Now that we have the data file in our working directory, we can load it in ... Continue reading

## Credit Risk Modelling – Case Study …

To build a good model, it is important to use high quality data. For the ... Continue reading

## Create a Confusion Matrix in R …

A confusion matrix is a tabular representation of Actual vs Predicted ... Continue reading

## Measure Model Performance in R Using ROC …

R’s ROCR package can be used for evaluating and visualizing the performance ... Continue reading

## Build the Predictive Model …

We have now gathered our data and cleansed/transformed it to suit our ... Continue reading