Strategic AI Consulting for Central Bank Credit Risk Modeling
The Challenge
A major European central bank needed expert guidance to structure and execute its inaugural AI project, aiming to improve the predictive accuracy of a critical credit risk model but lacking internal AI project methodology.
Approach & Execution
Project Overview
A large European central bank embarked on its first significant AI project to enhance its credit risk modeling capabilities. I was engaged to provide strategic consulting and help ensure the project’s success.
Work Done
- Strategic Review: Assessed the bank’s initial AI project plan and objectives.
- Methodology Implementation: Helped the internal team adopt a structured, hypothesis-driven workflow suitable for ML projects.
- Metric Definition: Collaborated to define clear, measurable success metrics, focusing on weighted accuracy relevant to credit risk assessment.
- Advisory: Provided ongoing guidance to the project team regarding ML concepts, potential challenges, and best practices.
- Stakeholder Communication: Developed and delivered concise project review documentation for the C-suite, highlighting progress against defined success metrics and articulating the business value.
Deliverables
- Strategic project review and recommendations.
- Defined AI project workflow and success metrics framework.
- Consulting support and knowledge transfer to the internal team.
- C-suite reporting documentation.
Solution Overview
Served as an external consultant, reviewing the initial project plan, establishing a clear hypothesis-driven workflow, defining robust success metrics (weighted accuracy), and providing strategic advice to the internal project team on ML approaches and pitfalls. Developed concise progress reports for C-suite stakeholders.
Key Results & Impact
- Contributed to increasing the credit risk model's weighted accuracy from 65% to >90%.
- Implemented a structured, hypothesis-driven methodology for the bank's first AI project.
- Provided clear, metric-focused reporting that built C-suite confidence in the AI initiative.
- Facilitated knowledge transfer on AI project management best practices.