Results for tag: "Model Risk"

Model Risk is a term used in the Capital Markets to refer to the risk associated with the use of models in decision-making. Models are used to make predictions and inform decisions, but they can be subject to errors and misjudgments. Model Risk is the risk of losses due to incorrect or incomplete models, or incorrect assumptions used in the models. It is a growing concern in the Capital Markets, as models are increasingly used to inform decisions. Model Risk is managed through a combination of model validation, model governance, and model risk management. Model validation is the process of assessing the accuracy and reliability of a model. Model governance is the process of ensuring that models are used appropriately and that the results are understood. Model risk management is the process of identifying, measuring, and mitigating model risk. Some companies in the Model Risk market include Moody's Analytics, SAS, FICO, and IBM. Show Less Read more