# Model Outputs

From Open Risk Manual

## Definition

**Model Outputs** denotes the list of numerical or categorical variables that encapsulate the outcome of a model calculation or "run". The significance of such outcomes lies in the manner in which they are subsequently used in internal and/or external processes.

## Examples

There is a wide variety of possible model outputs:

- Continuous Numerical values (valuations, hedge sizes, continuous risk scores)
- Discrete Numerical values or Categorical variables (ratings)
- Distributions (rankings of possible scenario losses)
- Discrete indicators (yes / no)
- Tabular Data (risk allocation to positions)

## Issues and Challenges

- Model outputs are frequently becoming in turn Risk Data (Risk Parameters) that are used as Model Inputs in further models, creating chains of dependencies and possible Model Risk propagation
- Careful documentation of all model outputs in use is part of good Model Governance