23.06.2023
For a second consecutive year, the Faculty of Economics and Business Administration and the Credit risk model validation team of KBC Group Branch Bulgaria carried out a number of joint educational initiatives in the field of artificial intelligence.
During the last successfully finalized such initiative five different case studies assignments backed up with real data for the MSc program “AI for Business and Finance” in the field of credit risk modelling were provided by the SSC validation team.
During the semester the Credit risk model validation team presented to FEBA students an overview of credit risk modelling and validation framework and carried out a sequence of meetings with Prof. DSc. Chobanov to define five different assignments in line with the syllabus of the course “Advanced Probability and Statistics”.
Students taking the course “Advanced Probability and Statistics” had the opportunity to deliver teamwork solutions on the assigned case studies with the following topics, that were presented to the students by Mihaela Angelova - PhD student in FEBA and part of the SSC validation team of KBC Global services - Branch Bulgaria:
- Representativeness analyses: Data exploration and visualization, Data analysis
- Testing the accuracy of the model predicted values, hypothesis testing
- Assessment of the predictive ability of the model and ensuring the model provides meaningful differentiation of risk and accurate and consistent quantitative estimates of risk for clients with high exposures
- Homogeneity test checking whether proposed model groups exposures of significantly different risk characteristics in the same rating grade or pool
- Analysis of theoretical paradoxical situation, related to assessing the predictive ability of the model
At the end of the course each team presented their solution to Prof. DSc. Chobanov (Head of the course), and representatives from the Credit risk model validation team of KBC Group Branch Bulgaria. For their projects students used R and Python programing languages together with Power BI interactive visualizations.
Dr. Irem Yaman (Head of the Credit risk model validation team) and her colleagues Mihaela Angelova, Zhivko Todorov ad Vilizar Goshev gave feedback and recommendations to all the students.
The management of the MSc program “AI for Business and Finance” expresses their gratitude to Dr. Irem Yaman and to the entire team of Credit risk validation for their invaluable support in the development of the MSc program “AI for Business and Finance”.
