**6. Conclusion**

This chapter presents a set of original tools that can be used in practice to improve the quality and efficiency of risk management for mass lending products (retail, microfinance, SME, and others). The first tool that is successfully used in the banking practice of the largest banks in Russia is the assessment of the effectiveness of credit decision-making in terms of discrimination of applicants for a loan. It relies on the generally accepted approach of ROC analysis. Measurement indicators are:


Based on the results of measuring the effectiveness of risk management, it seems possible to give reasonable hypotheses for improving the business process in a given segment or proposals for restructuring or closing the direction.

The second tool is the rigorously proven Marginal income theorem (9) underscoring power amplification. Which gives a simple formula for the lower estimate of such income. The application of this formula can serve as a fundamental economic justification for the issue of allocating resources to improve scoring models, procedures, and the quality of risk management in general, depending on the current risk-return and discriminatory power. It is shown that the formula works in the most interesting areas for decision-making. Namely, when the risk/return of incoming candidates is greater than one and when the risk management in its decisions has a discriminating power that is much higher than random. Examples of consequences, hypotheses, and business cases are proposed. Also, a targeted overview of modern promising areas for improving the efficiency of risk management in terms of improving the accuracy of scoring models underlying credit business processes is given.

*Risk Management, Sustainability and Leadership*
