"What we know about spreadsheet errors"

I'm hoping the official photographer got a more dramatic shot than this one, but in the meantime, this is the best I have.

A couple of people asked me afterwards for the spreadsheets errors citation - you can find Raymond Panko's, "What we know about spreadsheet errors" here.

The punchline - 94% of spreadsheets built by human's contain errors and the mean cell error rate is 5.2%. If you do credit analysis that should scare you.

If you're thinking "but I don't build this spreadsheets, I just check them", then don't get too comfortable... experiments have shown that people checking are "only moderately good at correcting errors". Oh dear.

So surely the question is, "Why aren't you getting a computer to do these tasks", rather than "Why should I let a computer do these tasks"?

#creditriskglobal #creditriskmanagementsummit #cognitivecredit