March 23, 2014

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Financial Model Risk

MODEL RISK: A central implication of the application of advanced analytics in the finance industry is that models, and model-based decision making, is becoming increasingly complex. There are growing risks for financial institutions that have failed to define and adopt formal approaches to model validation. The Deloitte ‘Global Model Practice Survey’ provides insights into financial […]

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September 8, 2013

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Analytics and Belief: The Struggle for Truth

proof

Increasingly sophisticated analytics tools and methods are available to derive business insight from data.  However, as a discipline which drives insight from data, the crucial ‘last step’ in the analytics process is about organizational decision making.  A sophisticated, intensive analysis may all be for naught if the crucial last step, framing and committing to a decision, misses the […]

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August 17, 2013

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Data science as an experimental process: unsupervised and supervised learning

Data Science

As a companion to my recent post “Correlation versus Causation: The Science, Art, and Magic of Experimental Design”, I wanted to offer a more technical exposition concerning data science approaches to focused causal model development. A fundamental question faced by business analytics professionals and data scientists is whether they have a working correlative and causal […]

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August 17, 2013

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Correlation versus Causation: The Science, Art, and Magic of Experimental Design

Venus

Recently I was chastised for being ‘unnecessarily obscure’ for reacting to a specious conclusion by suggesting that it risked ‘conflating correlation with causation’. Guilty as charged!  I apologize:  the expression is quite a mouthful and requires unraveling for those unfamiliar with the nuances of the applied experimental method.  However, I feel passionately that this concept […]

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June 19, 2013

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Business Analytics Model Risk Working Group

BAMRWG

  This is a review committee working group for practitioners and academics to establish a formal definition and set of classification criteria regarding business analytics model risk. This group has been established based upon interest and feedback concerning a recent set of posts regarding business analytics model risk: http://tinyurl.com/ktabt3q For those interested, you can join the […]

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June 17, 2013

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Adopting Analytics Culture: 6. What information is gained from social network analysis? (6 of 7)

social network

PART 6 OF 7 IN A SERIES ON ADOPTING ANALYTICS CULTURE LINK TO HEADER ARTICLE LINK TO PREVIOUS ARTICLE (5 of 7) 6.    What particular information is gained from social network analysis and how is it interpreted? To recap, we have established that adopting analytics culture requires organizational change management.  Beyond analytics technology and expertise, […]

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June 13, 2013

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Business analytics model risk (part 0 of 5): framing model risk – the complexity genie and the challenge of deciding on decision models

Model Risk

Business analytics model risk (part 0 of 5): framing model risk – the complexity genie and the challenge of deciding on decision models Introduction to a series of five articles on model risk Here we introduce a series of five articles seeking to frame, define, and categorize business analytics model risk.  The intention is to […]

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June 12, 2013

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Adopting Analytics Culture: 5. How can change management be improved via analytics? (5 of 7)

Organizational network

PART 5 OF 7 IN A SERIES ON ADOPTING ANALYTICS CULTURE LINK TO HEADER ARTICLE LINK TO PREVIOUS ARTICLE (4 of 7) 5.    How can change management be improved via analytics? We have built-up the case for using organizational change management to adopt analytics culture.  By analytics culture, we mean the set of both formal […]

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June 11, 2013

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Adopting Analytics Culture: 4. Why is the change management track record so poor? (4 of 7)

downsize

PART 4 OF 7 IN A SERIES ON ADOPTING ANALYTICS CULTURE LINK TO HEADER ARTICLE LINK TO PREVIOUS IN SERIES (3 of 7) 4.  Why is the change management track record so poor? Why are the results of change management initiatives so unpredictable and the outcomes so uncertain?  Earlier in this series, it was proposed […]

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June 5, 2013

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Business analytics model risk (part 4 of 5): categorizing model risk

model risk

Business analytics model risk (part 4 of 5):  categorizing model risk Following from article 3 of 5 on Business Analytics Model Risk Link to introductory header article (0 of 5) Model risk cannot easily be spoken of as a singular entity.  The topic is complicated in that there are multiple ways of categorizing model risk.  As […]

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