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 use in internal and/or external processes.

Examples

There is a wide variety of 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

  • Careful documentation of all model outputs in use is part of good Model Governance

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