Difference between revisions of "Look-through Approach"
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== Advantages == | == Advantages == | ||
| − | * Elimination of blind spots | + | * Elimination of [[Blind Spot | blind spots]] |
* Capturing dependencies | * Capturing dependencies | ||
Latest revision as of 20:11, 11 March 2024
Definition
Look-through Approach (LTA) denotes an approach to Risk Analysis that drills-down to and incorporates Risk Data and related considerations involving a deeper (second or more) layer.
Advantages
- Elimination of blind spots
- Capturing dependencies
Disadvantages
- Data Availability
- Complexity
- Model Risk
Examples
- In analysing the credit risk in a portfolio of Securitisation one can manage at the level of securities or look-through to the underlying claims / collateral
