Risk Segments
Allows evaluating the logicality and magnitude of the risks’ distribution and expected
odds for each risk segment
Additionaly, Risk Segments Graph helps to select cut-off point based on “Good : Bad” odds.
Acceptable Risk Segments Graph
Acceptable Risk Segments Graph
High Risk
Critical Risk
Not V-shaped distribution:
• Not all the biggest values are located on the edges, some
of them are in the center
• “Good : Bad” odds are not located sequentially one after
another, they are mixed.
• It is impossible to define acceptable cut-off point
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Low Risk
Medium Risk
“Good : Bad” Odds
are 11:1, 15:1, 36:1
A monotonous decrease of the “Bad” share from left to right
and an increase of the “Good” share as the score increases
(V-shape curve) means that the Scorecard’s performance is
correct.