Model Review Approach
The Prescio model review approach includes the following 10 items.
IntroductionReliance on quantitative models in banking and finance has dramatically increased over the preceding several years. The literature continues to grow, producing ever more complex modeling approaches. Increased complexity naturally leads to higher levels of model risk. Identification of model risk is one key goal of the model validation process. A marriage of sound business knowledge and advanced mathematical and statistical techniques, combined with a great deal of imagination, is required to develop sound and accurate models. The Prescio model review approach combines a wealth of business knowledge with mathematical and statistical expertise to provide a complete assessment of a model’s development and implementation.
Our model review teams are comprised of leading experts in the banking and finance industries who work alongside mathematicians and statisticians.Our goal is to provide sound judgment in all facets of model development from theoretical derivation of the model to data analysis, customized testing of model fit and output, and regulatory compliance.