Model: Difference between revisions
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imported>Doug Williamson m (Spacing 22/8/13) |
imported>Doug Williamson (Model risk ref added.) |
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== See also == | == See also == | ||
* [[Financial model]] | * [[Financial model]] | ||
* [[Model risk]] | |||
* [[Modelling]] | * [[Modelling]] | ||
* [[Scenario analysis]] | * [[Scenario analysis]] | ||
* [[Sensitivity analysis]] | * [[Sensitivity analysis]] | ||
* [[Stress test]] | * [[Stress test]] |
Revision as of 21:04, 8 December 2013
A representation of a real situation using a selected set of simplifying assumptions and relationships.
In finance, financial models are widely used as tools for valuation and to support financial decisions.
An important benefit of well-structured financial models is to facilitate sensitivity analysis.