Edcon, Africa`s largest fashion retail group, has retained PIC Solutions to project manage and support the implementation of a new re-randomisation process for its credit accounts.
Edcon is a sophisticated user of the Fair, Isaac TRIAD account management system. One of the features of TRIAD is the ability to conduct Champion/Challenger testing. This enables credit, risk and marketing managers to test new strategies on small but representative samples of their portfolios. Testing is achieved by randomly assigning a test digit to all accounts in the credit portfolio.
Jaco van Jaarsveldt, Group Financial Services Risk Manager at Edcon, states: "Getting re-randomisation wrong can be expensive, in terms of not being able to effectively measure Champion/Challenger tests. Although the principles of re-randomisation are very simple, there are a number of detailed technical and statistical subtleties that must be addressed to ensure that each portfolio is truly randomised to allow for effective testing.
"The experience of the PIC Solutions team will ensure that each of the potential issues can be identified, detailed and resolved prior to implementing the re-randomisation process. This allowed us to concentrate our efforts on the core business of developing improved credit management strategies."
Mike Crawley, Director of Software Services, advises: "It is essential for credit, risk and marketing managers to re-randomise their accounts on a regular basis. This ensures statistically random samples, which allows for a stable strategy-testing environment. PIC personnel have extensive experience of working with account management systems and our ICT and Analytical teams have conducted a number of re-randomisation assignments for both domestic and international clients."
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