Model risk
id:
model-risk-179-3387187
title:
Model risk
text:
In finance, model risk is the risk of loss resulting from using insufficiently accurate models to make decisions, originally and frequently in the context of valuing financial securities. Here, Rebonato (2002) defines model risk as "the risk of occurrence of a significant difference between the mark-to-model value of a complex and/or illiquid instrument, and the price at which the same instrument is revealed to have traded in the market". However, model risk is increasingly relevant in contexts
brand slug:
wiki
category slug:
encyclopedia
description:
original url:
https://en.wikipedia.org/wiki/Model_risk
date created:
2008-12-01T22:35:54Z
date modified:
2024-09-04T20:02:39Z
main entity:
{"identifier":"Q1409206","url":"https://www.wikidata.org/entity/Q1409206"}
image:
fields total:
13
integrity:
14