Posted By: cmullin


During my research of qualitative and environmental factors I came across the Qualitative Scoring Matrix in an article and a webinar here.  In both I see a 'Prior Adjustment' column and I was wondering if this is  a month vs month change in that particular risk factor? I have a similar methodology of assigning bps to a movement similar to the 'Current Adjustment' found in this article/webinar, however I was curious to know what the 'Prior Adjustment' is here?

Answer Question

One Answer

Aaron Lenhart

Thanks for your question! The Prior Adjustment is the cumulative adjustment that has been made for each factor. The Qualitative Scoring Matrix allows users to assess qualitative factors for each FAS 5 pool or sub-pool (e.g. risk rating, risk level, days currently past due). For each factor, the Overall Adjustment is the sum of the Prior Period Adjustment and the Current Adjustment. Once the calculation is finalized, the Overall Adjustment ‘becomes’ the Prior Adjustment for the next period.

Reply To This Answer

Please signup to answer this question.

A password will be e-mailed to you.