Internal Models Approach and Model: Difference between pages

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''Bank supervision - market risk.''
A representation of a real situation using a selected set of simplifying assumptions and relationships.  


(IMA).
In finance, financial models are widely used as tools for valuation and to support financial decisions.


The Internal Models Approach allows regulated banks to use their own risk evaluation models for certain market risk evaluation purposes, rather than external metrics.
An important benefit of well-structured financial models is to facilitate sensitivity analysis.




==See also==
== See also ==
*[[AMA]]
* [[Business model]]
*[[Bank supervision]]
* [[Decision tree]]
*[[Capital adequacy]]
* [[Financial model]]
*[[CVA]]
* [[Four-corner model]]
*[[STA]]
* [[Model risk]]
* [[Modelling]]
* [[Mostly positive]]
* [[Scenario analysis]]
* [[Sensitivity analysis]]
* [[Stress test]]
* [[Three-corner model]]

Revision as of 14:42, 20 June 2016

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.


See also