In finance, model risk is the risk of loss resulting from using insufficiently accurate models to make decisions, originally and frequently in the context...

Financial risk modeling is the use of formal mathematical and econometric techniques to measure, monitor and control the market risk, credit risk, and operational...

assessments of credit risk and may be used as a reference point to price loans or trigger collateral calls. Most lenders employ their models (credit scorecards)...

market risk, liquidity risk, credit risk, business risk and investment risk. The four standard market risk factors are equity risk, interest rate risk, currency...

the risk of the security and its expected return (instead replacing the security's expected return with the risk-neutral rate). The equation and model are...

The Swiss cheese model of accident causation is a model used in risk analysis and risk management. It likens human systems to multiple slices of Swiss...

investments or business adventures. A risk factor is a concept in finance theory such as the capital asset pricing model, arbitrage pricing theory and other...

portfolio. The model takes into account the asset's sensitivity to non-diversifiable risk (also known as systematic risk or market risk), often represented...

'move' exactly together, the HM model shows investors how to reduce their risk. The HM model is also called mean-variance model due to the fact that it is...

(sometimes risk theory or collective risk theory) uses mathematical models to describe an insurer's vulnerability to insolvency/ruin. In such models key quantities...

mathematical modelling in finance, in particular for his work on pathwise methods in stochastic analysis and mathematical models of systemic risk. He was awarded...

spread Credit risk, counterparty credit risk, and regulatory capital: EAD, PD, LGD, PFE, EE; Jarrow–Turnbull model, Merton model, KMV model Portfolio optimization...

In finance, systemic risk is the risk of collapse of an entire financial system or entire market, as opposed to the risk associated with any one individual...

Financial risk management is the practice of protecting economic value in a firm by managing exposure to financial risk - principally credit risk and market...

part of a system for risk-assessing computer security threats that was formerly used at Microsoft. It provides a mnemonic for risk rating security threats...

The risk-needs-responsivity model is used in criminology to develop recommendations for how prisoners should be assessed based on the risk they present...

change-related risks, cancer risks, and infectious disease risks. Within risk communication research, the risk information seeking & processing (RISP) model hypothesizes...

The spiral model is a risk-driven software development process model. Based on the unique risk patterns of a given project, the spiral model guides a team...

needed] Financial risk management Implied volatility Volatility smile IVX Market risk Model risk § Uncertainty on volatility Value at risk Volatility beta...

In simple terms, risk is the possibility of something bad happening. Risk involves uncertainty about the effects/implications of an activity with respect...

Risk management is the identification, evaluation, and prioritization of risks, followed by the minimization, monitoring, and control of the impact or...

modelled like other types of risk. For example, Eurasia Group produces a political risk index which incorporates four distinct categories of sub-risk...

liquidity risk. Risk-averse investors naturally require higher expected return as compensation for liquidity risk. The liquidity-adjusted CAPM pricing model therefore...

Jarrow–Turnbull model is a widely used "reduced-form" credit risk model. It was published in 1995 by Robert A. Jarrow and Stuart Turnbull. Under the model, which...

developed pricing models. Valuation errors can result for instance from missing consideration of risk factors, inaccurate modeling of risk factors, or inaccurate...

using a linear (risk-neutral) utility in the payoff, assuming some known model for the payoff. This means that you try to find the risk-neutral measure...

can decline. In economic modeling, model outcomes depend heavily on the nature of risk. Modelers often incorporate aggregate risk through shocks to endowments...

Interest rate risk is the risk that arises for bond owners from fluctuating interest rates. How much interest rate risk a bond has depends on how sensitive...

In economics and finance, risk aversion is the tendency of people to prefer outcomes with low uncertainty to those outcomes with high uncertainty, even...

agencies tend to use quantitative econometric models and focus on financial analysis, whereas political risk providers tend to use qualitative methods, focusing...