Model risk: related pages

The testing of a financial model by using it on past date and then comparing the 'predictions' to what actually happened.

The probability that the actual return on an investment may differ from the expected return.

A useful technique for financial modelling that uses random inputs to model uncertainty.

An event that is highly improbable (and unforeseen and therefore omitted from models) that nonetheless occurs and has a significant impact.

A specialist in the mathematical techniques of finance. Often called "quant" or "rocket scientists".