Patent ID: 7870047

Claim:
A method for identifying a customer at risk of revenue change and identifying individual erosion risk factors of a portfolio of contracts, said method being executed by a processor, the method comprising: constructing, as executed by the processor, a set of examples of client accounts; specifying a set of candidate risk drivers of the client accounts; computing, as executed by the processor, descriptive numeric features that capture erosion risk factors from each of the set of candidate risk drivers during a time window of interest; forming a mathematical model, as executed by the processor, to compute a risk score of contract termination and individual risk scores associated with each of said erosion risk factors; computing, as executed by the processor, a set of descriptive numeric features for the portfolio of contracts that is to be tracked based on the formed mathematical model; applying the formed mathematical model, as executed by the processor, to the set of descriptive numeric features; computing, as executed by the processor, a score indicating a risk exposure of an account in the portfolio of service contracts; computing, as executed by the processor, individual risk factor scores indicating a contribution of each of the risk factors to the computed score; and sorting the portfolio, as executed by the processor, to determine one of a client's risk, a client's financial pressures, a customer's unhappiness level, and how much of a client's revenue is exposed to high risk.