Thursday, March 19, 2009

intelligent Knowledge based system (1)

If the large corporates are increasingly being credit assessed by rating agencies on behalf of landers and smaller lending s are being handled by credit scoring systems,the remaining home for traditional credit assessment techniques would seem to be in the small and middle corporate market .Even here science increasingly impinges with the growing widespread use of intelligent knowledge based systems :commonly Known as 'expert systems ' .
the idea behind expert systems is to multiply the experience of experts by feeding the rules and observations developed from their working lives into a computer model lenders have quickly become comfortable with the way expert systems credit assess lending s, because they mirror their own mind's work when evaluating a lending proposition .
however ,there are dangers with expert system . As previously indicated with regard to credit scoring system , the use of any sort of system produces systemic risk.The main use of expert systems has developed only since the last major period of recessionary economic conditions; expert systems for credit assessment have not yet been 'stress tested' in the most demanding conditions.

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