Risk and reward assessment mechanism
US8577776B2 · kind B2 · utility
Assignee
Inventors
Key dates
| Filing date | Sep 14, 2012 |
| Grant date | Nov 5, 2013 |
| Priority date | — |
| Expiry date | Sep 14, 2032 |
Classification
- Technology area (CPC G)Physics
- CPC primaryG06Q30/02
- WIPO fieldIT methods for management
- WIPO sectorElectrical engineering
Abstract
A data driven and forward looking risk and reward appetite methodology for consumer and small business is described. The methodology includes account level historical data collection for customers associated with accounts as part of a portfolio. The account level historical data is segmented into groups of customers with similar revenues and loss characteristics. Segmented data is decomposed into seasoning, vintage, and cycle effects. Statistical clusters are formed based upon the data and effects. A simulation is applied to the statistical clusters and prediction data is generated. A simulation strategy to forecast and simulate revenue and loss volatility is developed. Efficient frontier curves of risk (e.g., return volatility) and reward (e.g., expected return) are created for the current portfolio under various economic scenarios.
Source: USPTO / EPO open patent data. Objective bibliographic and citation counts.