One of the key decisions financial institutions have to make as part of their daily operations is to decide whether or not to grant a loan to an applicant. With the emergence of large-scale data-storing facilities, huge amounts of data have been stored regarding the repayment behavior of past...

Start-ups are crucial in the modern economy as they provide dynamism and growth. Research on the performance of new ventures increasingly investigates initial resources as determinants of success. Initial resources are said to be important because they imprint the firm at start-up, limit its...

An important objective of data mining is the development of predictive models. Based on a number of observations, a model is constructed that allows the analysts to provide classifications or predictions for new observations. Currently, most research focuses on improving the accuracy or...

This article reviews some of the applications of mathematical programming infinance. Of course mathematical programming has long been recognised as a vitalmodelling approach to solve optimization problems in finance. Markowitz’s NobelPrize winning work on portfolio optimization showed how...

Successful start-up firms make a valuable contribution to economic growth and development.Models that provide insight into the management of start-up firms are therefore important. We consider the problem of managing inventory and production capacity in a start-up manufacturing firm and argue...

Tremendous growth in the credit industry has spurred the need for Credit Scoring and Its Applications, the only book that details the mathematical models that help creditors make intelligent credit risk decisions.Creditors of all types make risk decisions every day, often haphazardly. This book...

The use of credit scoring - the quantitative and statistical techniques to assess the credit risks involved in lending to consumers - has been one of the most successful if unsung applications of mathematics in business for the last fifty years. Now with lenders changing their objectives from...

In this article, we describe the construction and implementation of a pricing model for a leading UK mortgage lender. The crisis in mortgage lending has highlighted the importance of incorporating default risk into such pricing decisions by mortgage lenders. In this case the underlying default...

Although the corporate credit risk literature has many studies modelling the change in the credit risk of corporate bonds over time, there is far less analysis of the credit risk for portfolios of consumer loans. However behavioural scores, which are commonly calculated on a monthly basis by...