Model: Difference between revisions
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imported>Doug Williamson (Model risk ref added.) |
imported>Doug Williamson m (Link with Mostly positive page.) |
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* [[Model risk]] | * [[Model risk]] | ||
* [[Modelling]] | * [[Modelling]] | ||
* [[Mostly positive]] | |||
* [[Scenario analysis]] | * [[Scenario analysis]] | ||
* [[Sensitivity analysis]] | * [[Sensitivity analysis]] | ||
* [[Stress test]] | * [[Stress test]] | ||
Revision as of 09:42, 28 May 2014
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.
