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 institutional practices regarding the management of model risk.

This paper is of interest to those concerned with the risk of failed decisions due to improper decision model validation:
http://bit.ly/1phfF7L

About SARK7

Scott Allen Mongeau (@SARK7), an INFORMS Certified Analytics Professional (CAP), is a researcher, lecturer, and consulting Data Scientist. Scott has over 30 years of project-focused experience in data analytics across a range of industries, including IT, biotech, pharma, materials, insurance, law enforcement, financial services, and start-ups. Scott is a part-time lecturer and PhD (abd) researcher at Nyenrode Business University on the topic of data science. He holds a Global Executive MBA (OneMBA) and Masters in Financial Management from Erasmus Rotterdam School of Management (RSM). He has a Certificate in Finance from University of California at Berkeley Extension, a MA in Communication from the University of Texas at Austin, and a Graduate Degree (GD) in Applied Information Systems Management from the Royal Melbourne Institute of Technology (RMIT). He holds a BPhil from Miami University of Ohio. Having lived and worked in a number of countries, Scott is a dual American and Dutch citizen. He may be contacted at: webmaster@sark7.com LinkedIn: https://www.linkedin.com/in/smongeau/ Twitter: @sark7 Blog: sctr7.com Web: www.sark7.com All posts are copyright © 2020 SARK7 All external materials utilized imply no ownership rights and are presented purely for educational purposes.

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