Financial market risk and Financial model: Difference between pages

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The risk of losses or other adverse effects resulting from unfavourable market prices or other adverse changes in financial markets, such as the foreign exchange, commodity or interest rate markets.
''Spreadsheets and models.''


A simplified representation of a financial situation, using selected assumptions.


Examples of other adverse changes in financial markets would be market disruption, or new and burdensome regulation.
Financial models are widely used in practice for valuation, and to support financial decisions and risk management.
 
Models are also an important tool in finance coaching and financial education.
 
 
In simple terms, a model:
*Presents a financial calculation (or calculations)
*In a way that enables the user to understand it and to challenge it, especially about its assumptions.






== See also ==
== See also ==
* [[Credit crunch]]
* [[Ceteris paribus]]
* [[Financial market price risk]]
* [[Coaching]]
* [[Financial risk]]
* [[Deterministic]]
* [[Market price risk]]
* [[Financial modelling]]
* [[Market risk]]
* [[Model]]
* [[Risk management]]
* [[Rounding]]
* [[Sensitivity analysis]]
* [[Shadow model]]
* [[Simulation]]
* [[Spreadsheet]]
* [[Spreadsheet risk]]
* [[Stochastic]]
* [[Tab]]
* [[Workbook]]


[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]
[[Category:Technology]]

Revision as of 13:54, 8 April 2021

Spreadsheets and models.

A simplified representation of a financial situation, using selected assumptions.

Financial models are widely used in practice for valuation, and to support financial decisions and risk management.

Models are also an important tool in finance coaching and financial education.


In simple terms, a model:

  • Presents a financial calculation (or calculations)
  • In a way that enables the user to understand it and to challenge it, especially about its assumptions.


See also