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Model risk refers to the potential for a financial institution or organization to incur losses due to errors in model development, implementation, or use. This risk arises when the models used for decision-making—such as risk assessment, pricing, forecasting, and portfolio management—do not accurately represent the real-world processes they are intended to emulate.

Ancestors (5)

  1. Actuarial science
  2. Applied mathematics
  3. Fields of mathematics
  4. Mathematics
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