For any scoring model, you can define a set of automation rules to guide the implementation of credit recommendations without user intervention. Automation rules let a credit review proceed uninterrupted through the workflow, during which a credit recommendation is automatically implemented based on the score that the scoring model calculates.
To accomplish this automatic implementation of credit recommendations, you associate credit score ranges with recommendations when defining automation rules. For example, if the credit score is below 50, you might want to automatically reject a credit request.
Such automation is preferable when the credit risk, as defined by your enterprise's credit policies, is minimal and the credit score can drive the credit decision. This lets your credit personnel focus their efforts on higher risk credit reviews.
When you define automation rules, you can also indicate approval options for each decision. Credit Management lets you decide if you want to skip the required approval on a credit decision. See: Setting Up Credit Decision Approval Policies.
You can define a set of automation rules for any of your scoring models, provided that:
A checklist and scoring model are defined and assigned to a credit review type and credit classification combination
Automation rules do not yet exist for the combination
Prerequisites
Create a scoring model. See: Defining Scoring Models.
On the Automation Rules page, search for a submitted scoring model to view its existing automation rules, or search for a saved scoring model to view and update automation rules.
Select a scoring model and click the View Details to navigate to the Automation Rule Details page.
The Automation Rule Details page displays all credit decisions that are defined for the selected scoring model.
Otherwise, to define new rules, click Create Automation Rule.
The Create Automation Rules page displays the scoring models that are eligible for automation.
Select a scoring model and click the Add Rules icon to define a set of automation rules.
Enter the effective dates for this automation rule.
The Start Date defaults to the current date, but you can change it to a future date.
In the End Date field, optionally enter the end date for this set of automation rules. Enter an end date if your credit requirements change and you want to define a new set of automation rules that are more in line with your revised credit policies.
If the End Date field is populated, then this set of automation rules is inactive. Any credit analysis using these rules will require user intervention.
Use the Low Score and High Score fields to define the score range for this automation rule.
Note: Credit scores are calculated as whole values, so enter only integers.
Select the Skip Approval check box if you want to automatically implement credit recommendations without the defined approval hierarchy.
Click the Add Recommendations icon to assign automation rules (automatic credit decisions) to this score range.
Use the Overall Credit Limit or Transaction Credit Limit fields to define the credit limit for this score range. Or, use the Change Overall Credit Limit by Percentage or Change Overall Transaction Credit Limit fields to indicate a percentage increase limit.
You can assign additional values for a recommendation. For example, for a recommendation of increase credit limit to CAD $800,000, value 1 is currency = CAD and value 2 is 800,000.
Do not enter a value in any field if you do not want Credit Management to automatically implement credit increases.
From the list of values, select a credit classification that you want to automatically assign to the applicant if they receive a credit score in this range.
Select the recommendation or recommendations that you want to automatically implement for an applicant who scores in this range.
You can add another row to enter another score range and associated automation rules.
If the scoring model uses weighting factors for each score range, then the credit score is always a complete range from 0 to 100. If not, then the scoring model will produce a raw score that can be outside the 0 to 100 range.
Warning: When defining automation rules, be sure to enter ranges for the entire potential range of credit scores. Later, during a credit review, if a score falls outside the automation rule score ranges, then the workflow will fail and the credit review will be assigned to an analyst for a manually selected recommendation.
Alternatively, you might want the workflow to fail for a particular score range. For example, if a credit score is below 20, then you might want to assign a credit analyst to this credit review for manual processing. In that case, you can skip of range of scores when defining automation rules.
Click Submit to freeze this set of automation rules for the selected scoring model.
After you submit, you can no longer update these automation rules.
Other Sources
Oracle Approvals Management Implementation Guide