Exploratory Data Analysis (EDA) is a method of analyzing data that makes use of visual approaches to do it. By using statistical summaries and graphical representations, it may be utilized to detect trends and patterns, as well as to test assumptions and hypotheses. In order to possess a credit risk analyst certification, you must be well versed in feature engineering and EDA.
There are many different approaches to analyzing large amounts of data, but Exploratory Data Analysis (EDA) relies heavily on visual methods and philosophies. The following are the two most important features of EDA:
- Data should be explored with an open mind to all possibilities before any assumptions are made.
- It is important to maintain a level of scepticism in order to guarantee that the data conveys the truth.
For Exploratory Data Analysis (EDA), there is no set of established procedures. It is important to remember that EDA is an approach to data analysis, not a collection of methodologies that are predetermined. It is more of a philosophy and art than a scientific endeavour.
There are no presuppositions regarding the facts that are being analyzed. Rather than reject or accept any presupposition, we are attempting to obtain a sense of the facts and what they could indicate before the analysis begins. Instead of imposing a model on the data, EDA relies on the data's own inherent meaning to guide its analysis.
Feature engineering is the process of building artificial features into a learning process and incorporating them into the model. These generated qualities are then used by the algorithm in order to increase its overall performance or in other words, to provide better outcomes for the user. To learn additional variables not included in the training set, feature engineering is used. To make data transformations faster and more accurate, it may generate new features for supervised and unsupervised learning.
Where are EDA and Feature Training Used in Credit Risk Management?
Personal information and transactional data are used to identify and assess a customer's creditworthiness by analyzing credit scores, a standard risk management approach in the banking sector. EDA and feature engineering are extensively used in this sector in Credit Score Analysis. EDA is also extensively used in the field of Fraud Detection.
Why this Course?
India's credit lending life cycle is expanding rapidly, making it one of the fastest-growing credit markets in the world. There is a change in consumer attitudes and savings, and the MSMEs sector is growing quickly. This has resulted in an explosion of Non-Banking Financial Companies (NBFCs). There will be a need for credit capabilities in every company because of this increase. Jobs requiring a deep understanding of credit will become more crucial as companies increasingly depend on technology to speed up operations.
Imarticus developed the Credit Risk and Underwriting Prodegree programme with the assistance of Moody's Analytics in order to help students better understand the lending markets in banks and non-banking financial organizations. There are parts on credit administration, credit underwriting, regulatory requirements, the lending environment, and the impact of technological innovation on all of these areas of competence, to name just a few examples.
A Credit Risk & Underwriting Prodegree from Imarticus is a great option for individuals looking for a top credit analyst certification course on the market, which includes hands-on experience, case studies, and significant aid with job placement. You will even get a credit risk modeling certification and be able to take your profession to new heights as a result of this.