Characteristic
From Open Risk Manual
Revision as of 11:19, 2 September 2021 by Wiki admin (talk | contribs)
Definition
Characteristic (also Feature in Machine Learning context) is a general term denoting a variable or other concrete determinant that influences the Risk Profile of a system, entity, financial asset etc. It is used predominantly in development of statistical risk models
Example
The values: Owner, Renting, Parents are the attributes of the characteristic Residential Status
Issues and Challenges
- Non-monotonic behavior (Reversal)