Scoring methods for predicting default risk

Siham Lotfi, Mariam Gadmi, Hicham Mesk, Adil Loulid

Effective control and management of credit risk have become a primary concern for financial institutions, which are constantly developing models for analyzing, assessing, and predicting this risk, particularly in light of the prudential standards required by central banks. Credit risk assessment and prediction methods are represented in the form of scoring models, which aim to predict a company's default using financial and accounting information. The objective of this work is to study the various credit scoring techniques and their advantages as a powerful tool for predicting borrower solvency.