Data Sourcing

From Open Risk Manual

Definition

Data Sourcing (also Data Collection) is the process of extracting data from external or internal (front/back office systems) comprising an institution's Data Infrastructure for diverse purposes of Risk Management, Portfolio Management and/or other business objectives.

Data Sourcing is particularly important for the purposes of Model Development and Model Validation.

Issues and Challenges

  • Lack of Risk Data Standards can substantially complicate the sourcing of relevant data
  • Incomplete or otherwise faulty data sourcing processes can potentially bias the data samples and thereby limit model quality.

References

Contributors to this article

» Wiki admin