Case Study 4 (Data Governance)

Risk Appetite

Applicant: Trevor Goal: Investment Loan Channel: Bank Direct

Scenario 4 A.png

Questions to Consider

  • Should the Lender’s be expected to review raw banking transactions and assess risk transactions (such as gambling)?

  • Who defines what transactions are risky?

  • What happens if the Lender still approves a loan with risk transactions?

  • Where does the risk appetite fit vs Responsible Lending compliance regarding the volume, value or types of transactions?

  • How does the Lender audit and track decisions based on individual transactions?

  • Can/Should Lenders decline these loans?

  • Can Lenders build propensity models from these transactions? How about health transactions?