Model Risk Management
Model Risk Management refers to the process of identifying, assessing, and controlling potential risks associated with the use of mathematical models, simulations, or algorithms within a business or organization. This includes ensuring that models are accurate, reliable, and appropriate for their intended purpose, as well as monitoring and mitigating any potential negative impacts that may arise from model errors or limitations. Model Risk Management aims to optimize the use of models while minimizing the potential for financial losses, regulatory issues, or other adverse outcomes.
External Links
- [Inductive.com] Inductive Solutions, Inc. - Quantitative Risk Management and Mathematical Modeling
- [rms.com] Risk Management Models, Analytics, Software Services | Moody's RMS