Knock-out rule

A knock-out rule is a rule in a credit policy that declines an application outright when a hard condition fails, before any scoring. The condition may concern age or a recent default.

Example

For illustration, a policy might decline an application if the applicant is below the stated minimum age. That knock-out check is applied before the application receives a score.

On credit policy management, Decisimo’s assistant can propose a decision flow with a rule set of knock-out rules; the risk team accepts or rejects each proposed step, and only accepted steps are built.