Capital One 1996 Annual Report Download - page 15

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Please find page 15 of the 1996 Capital One annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

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While Capital One’s strategy
is one of aggressive growth
through innovation, it is anchored
in a culture of conservatism.
Our innovation is pragmatic, tied
to a rigorous discipline of testing,
which lets us know in advance
which ideas are likely to succeed in
the marketplace. New products are
not rolled out unless they demon-
strate an ability to deliver superior
returns. We forecast the inevitable
decline of existing opportunities,
plan for the obsolescence of our
products, and challenge the organi-
zation to find new sources of
growth. While our management of
credit risk employs highly sophisti-
cated statistical models, extensive
testing and monitoring, and con-
stant recalibration of models as
markets move, we understand that
credit risk is partly driven by
external factors beyond our con-
trol. So we fortify our position
with large financial buffers, one of
the industry’s lowest average cred-
it limits, stringent credit under-
writing and flexible products—
all designed to help us weather
adverse credit developments.
Guided by Conservatism
13