The Determinations of The Consumer Credit Default Probabilities in The Telecommunication Industry

Risk Management subject is increasingly getting more attention especially after the 2008 global financial systems chock caused the recession, the research is aiming to define and evaluate the determinations and benefits of the statistical methods, to determine the optimum accuracy for the payments’ performance, and to maximize the benefits of the financial consumer credit default swap. defining the variables that influence the risk management, applying and focusing on the telecommunications industry with the financial and non-financial dimensions, research will use the descriptive research method to describe, explore and investigate the amount and direction of the relationship between the variables that may affect the consumer credit defaulting, and how to prioritize it, using the multi-regression statistical analysis that explaining 34% of payments performance and transfer the rest of residual risk through financial swaps’ contracts as a new suggested module for the telecommunication industry, the results support the importance for considering additional aspects for the client’s profiling while taking the credit worthiness decision. recommending and encouraging further research, covering advanced techniques such as the artificial neural network “ANN” for maximum credit scoring accuracy and better payment performance. The study results avail suggestions for the telecommunication companies making adjustments for their credit risk matrix, building on the customer’s profile to mitigate the defaulting risk; then research suggests hedging the remaining risk through financial tools such as the credit default swaps on lower premium fees, reaching the minimal risk level.