Thursday, November 10, 2005

Risk Management

Faire Isaac (NYSE: FIC) has hired a key employee to lead its efforts in Japan. FIC provides analytic and decision management technology to its clients. The Company uses advanced algorithms and programs to gauge risk levels of customers, which allows Faire Isaac clients to make intelligent decisions.

This is exactly what Japan needs. The country has been plagued with problems in the financial institution. Non-performing loans remain relatively high and threaten the health of the Japanese financial system. Japan will need to move away from their past lending policies that are heavily influenced by personal relationships.

Utilizing analytic technologies will allow these financial institutions to better understand their customers and the associated risk levels. The Japanese economy has been in the dumps over the past years, but it appears that real reforms are in the works. Their deflationary trends seem to be reversing, but Japan will need to clean house before things look clear.


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