01 / THE DETAIL
Preserve the ingredients
Retain references to the authorised data version, mapping, transformations, feature definitions and as-of date. Record the fitted model, scenario and policy versions. Avoid copying unnecessary sensitive data into narrative reports.
02 / THE DETAIL
Explain the conclusion
Include the result, principal drivers, missing evidence, uncertainty and any exception or override. Show the original and changed assumption where relevant. A recorded override should identify its rationale and responsible decision maker.
03 / THE DETAIL
Distinguish facts, estimates and choices
Make it easy for a colleague to see which parts of a decision came from records and which depend on judgement.
- Recorded facts: applications, payments, balances and other information available on the decision date.
- Model estimates: the expected risk, recovery or contribution and the information behind it.
- Scenario assumptions: choices such as future growth, funding cost and recovery timing.
- Management decisions: the policy applied, reviewer approval and reasons for any exception.
04 / THE DETAIL
Keep approvals and follow-up clear
Record the decision, who approved it, the approach used and when it should be reviewed. Keep changes to a model separate from changes to your credit policy. When explaining an earlier decision, refer to the information and rules that applied then.
EXAMPLE / PUTTING IT INTO PRACTICE
A reviewer asks why an account was referred. The record should point to the original evidence, score or calculation, rule and recorded exception. That allows an explanation of the historical decision rather than a fresh decision with different information.
WHAT YOU TAKE FORWARD