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From Open Risk Manual
  • * [[Kraljic Model]] (New Entry) * [https://www.openriskacademy.com/course/view.php?id=73 Input-Output Model Interactivities]
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  • ...can lead to a variety of financial and / or reputational [[Loss]] events. Model risk is generally considered to be a type of [[Operational Risk]]. ...ed to the assessment of risk, which is a common use in financial services, model risk can also be seen as a ''second-order'' risk (a contributing factor to
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  • ...P)) of the model under consideration versus the "perfectly" discriminating model. (See also: [[Receiver Operating Characteristic]]) ...ex | Gini Coefficient]] yet it should not be confused with the more common use of that term to measure inequality.
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  • == Relevance for Model Performance == ...y constitute a significant component of the computational budget of a risk model in terms of computer memory requirements or computational power requiremen
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  • The AMA framework must include the use of four data elements: ...re is large discretion on how to combine the elements into a coherent risk model. Some common approaches:
    2 KB (238 words) - 14:34, 19 November 2019
  • ...ison of observed outcomes with expected outcomes derived from the use of a model. ...development or validation process. Backtesting compares the latest set of model predictions against actual realizations, with the validation sample being f
    3 KB (371 words) - 23:40, 9 March 2021
  • ...stem (i.e., the scoring system can use credit bureau scores as part of the model attribute set) ...riable(s) of the overall internal rating, there is a risk that an internal model may not consider all relevant information.<ref>ECB guide to internal models
    4 KB (644 words) - 13:33, 19 November 2018
  • ...ce a set that is suitable for use, e.g., in [[Model Development]] and/or [[Model Validation]]. ...a cleansing may hide issues with the dataset that would prevent building a model that is fit for purpose. For example engineering a less representative samp
    2 KB (217 words) - 21:01, 11 September 2020
  • ...mply with this requirement, institutions should ensure that when they make use of external data or pooled data they have a complete understanding of the d ...fault definition in [[External Risk Data]] used to support building a risk model may differ (see ECB TRIM section)
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  • ...odels''' are a class of [[Portfolio]] level or [[Enterprise]] level [[Risk Model | risk models]] which typically aggregate within and across the risk types The overall structure of an economic capital model mirrors the recognized and capitalized regulatory [[Risk Type | risk types]
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  • ...practices and organizational arrangements supporting a rigorous (audited) model development and validation cycle. Model Validation ensures that developed models offer good presentation of the var
    1 KB (145 words) - 11:03, 15 September 2021
  • ...mation that is in use by a firm or organization. Sometimes also called a ''Model Map''. ...rall [[Model Governance]], with a key objective identifying and managing [[Model Risk]].
    939 bytes (133 words) - 14:35, 19 November 2019
  • ...ns, derivations, tests and other analyses that support the use of a [[Risk Model]] for a given purpose. ...g good [[Model Governance]] and is an indispensable tool for [[Independent Model Validation]].
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  • ...h reference to data or be subject to explicit policy decisions. Important model parameters may become integral to the risk management process as they have Examples of model parameters include
    893 bytes (116 words) - 18:42, 28 January 2020
  • ...ed into business actions. It is the context into a certian model is put to use. ...any other model adjustment mechanisms that may intermediate and modify the model output before final action.
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  • ...esting''' is the label of one of the most powerful quantitative means of [[Model Validation]] in the pre-implementation phase. ...on separating the total data set and restricting model development to the use of a sub-sample only. The sub-sample can be restricted in the time-dimensio
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  • * Estimating a roll rate matrix constitutes a simple type of a credit [[Risk Model]] in that it allows projecting likely outcomes over the future periods. Com ...nal Transition Matrix]] are useful to mitigate this weakness (and hidden [[Model Assumptions]])
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  • ...ps between variables (e.g., scatter plots, Q-Q plots, histograms), overall model performance (power curves) etc. There is large variety of possible [[Visual ...information with the unintentional or intentional abuse of the technique (use of wrong scales, misleading areas or volumes
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  • ...wn empirical model to quantify required capital for credit risk. Banks can use this approach only subject to approval from their local regulators. Under A-IRB banks are supposed to use their own quantitative models to estimate PD ([[probability of default]]),
    7 KB (1,023 words) - 12:30, 26 March 2021
  • ...g to distinguish limit systems that utilize additional (potentially [[Risk Model]] dependent parameters) from those that are based more directly on observab There is a large collection of potential pitfalls associated with the use of risk limits. We can group them roughly in two categories: immediate issu
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  • '''Model Taxonomy''' is a classification and documentation system for the (financial A model taxonomy might be the organizing principle behind a [[Model Inventory]] system. It is related to be is distinct from the [[Risk Taxonom
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  • ...rical Variable | categorical variables]] that encapsulate the outcome of a model calculation or "run". The significance of such outcomes lies in the manner There is a wide variety of possible model outputs:
    1 KB (153 words) - 11:34, 20 November 2019
  • ...hest level decomposition (and a distinctive future of the taxonomy) is the use of ''contracting'' as key differentiator of risk types ...l) perspective places less weight to day-to-day operational and [[Business Model Risk]]
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  • Risk Manual Template (Version 1.0 - May 2014). Use this text when generating new articles In case of synonyms use a parenthesis to indicated alternatives: (Also: AlternateName1, AlternateNa
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  • ...expertise to develop specifications to support the collection, sharing and use of structured data for data reporting and analysis. ...w.eba.europa.eu/regulation-and-policy/supervisory-reporting EBA Data Point Model] (Based on XBRL)
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  • * Organizations typically use diverse sources of risk data, which formally can be organized using a [[Ris ...[[Abstract Risk Model]] into a concrete [[Model Implementation]] via the [[Model Specification]] process.
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  • ...lp us maintain this list up-to-date by submitting additions / corrections (Use info at openrisk eu). Submissions should have a publicly accessible URL (li |Use of changes in the risk of a default occurring over the next 12 months when
    24 KB (3,113 words) - 16:52, 1 September 2020
  • '''The credit scoring model collection focuses on the classic one period credit assessment / classifica * credit migration models that besides default aim to model an entire [[:Category:Credit_Rating_System | credit rating system]] and ass
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  • ...tions of links to external resources. Collection pages will typically make use of tables to create an easily readable list. As an example the list of [[Fi === Model Descriptions ===
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  • ...n attribute of [[Risk Data]], relevant in the context of developing [[Risk Model | risk models]]. It denotes the degree to which the historical data set off The concept is linked to, but is more loosely use in practise, than the [[wikipedia:Representativeness Heuristic | representa
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  • ...ssions and (where applicable) mathematical definitions / formulae. You can use the [[:Category:IFRS 9 | category tree]] to browse these articles directly. ...e first day of the first reporting period following the change in business model that results in an entity reclassifying financial assets
    10 KB (1,464 words) - 11:38, 25 September 2020
  • ...ing in the [[Loan Tape]], which constitutes a direct input to the sampling model.
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  • ...ring]] systems. While banks currently using the [[Advanced IRB Credit Risk Model | advanced internal ratings-based approach]] (IRB) to establish their capit If the asset passes the contractual cash flows test, the business model assessment determines how the instrument is classified. If the instrument
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  • * It should include provisions on the use of ratings of third parties that provide contractual support to more than o ...uaranteed by a third party that is not in the range of application of a PD model and the guarantee fulfils all requirements for credit risk mitigation (CRM)
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  • * Whether the model estimation based on market data or historical default data ...th respect to SICR, when making the assessment, the reporting entity shall use the change in the risk of a default occurring over the expected life of the
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  • '''Risk Model''' denotes any quantitative (mathematical), qualitative or hybrid approach ...s still essential in quantitative risk models, at all stages of the [[Risk Model Lifecycle]]
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  • ...list of projects (both big and small) that adopt the open source licensing model in the development of software relevant for risk management. The scope of t ...lp us maintain this list up-to-date by submitting additions / corrections (Use info at openrisk eu). Submissions should have a publicly accessible URL (li
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  • ...l data ("Garbage In") and as a consequence produce nonsensical, unusable [[Model Outputs]] outcomes ("Garbage Out"). * Extensive use of [[Data Proxies]] due to lack of more relevant / representative data
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  • * the intended purpose of the loan ([[Use of Funds]]) (consumption, investment etc.) ...jectively (in [[Expert Based Models]]) or quantitatively in [[Quantitative Model | quantitative / statistical models]].
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  • An '''Economic Scenario Generator''' (ESG) refers to a mathematical model (and its computer implementation) that simulates possible future paths of e .... Such auxiliary specific models are typically implemented via [[Satellite Model | satellite models]].
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  • * Automated Valuation Model * Use of consensual vs. non-consensual foreclosure (historic and forward looking)
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  • ...T data life cycle (i.e. designing the data architecture, building the data model and/or data dictionaries, verifying data inputs, controlling data extractio * Use of faulty external data.
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  • ...bly estimate the expected life of a financial instrument, the entity shall use the remaining contractual term (Maturity) of the financial instrument. * Use of the expected life of an instrument for ECL purposes differentiates the I
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  • '''Var-Covar''' (Variance-Coveriance) model denotes a simple methodology that allows the [[Risk Aggregation]] of distin ...gation, e.g, to aggregate [[Market Risk]] in the [[Trading Book]]. Another use is to apply Var-Covar at the top level of risk aggregation, for example com
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  • ...all the risks in their business but also to encourage banks to develop and use better risk management techniques in monitoring and managing their risks. F * Analysis of the viability of the [[Business Model]] of the bank or banking group and analysis of the sustainability of its [[
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  • * [[Revenue Risk]], e.g. from excess reliance on a particular [[Business Model]] ...bination of off-site monitoring and on-site examination. Some supervisors use off-site monitoring only, and some supervisors consider input from suppleme
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  • ...n a business context. The approach follows the general lifecycle of [[Risk Model]] development adapted to the specific requirements of [[Credit Risk]]. ...specific to credit scorecards but are common across wider ranges of [[Risk Model Lifecycle | risk models]]
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  • * The business use of the scorecard, e.g. [[Risk Acceptance]] of new clients on the basis of a ...rformance characteristics]] for accepting the deployment and/or continuing use of the scorecard
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  • <p><b>Cookies </b>: We use cookies to help identify and track visitors in their usage of the website, <p><b>Log files </b>:We use IP addresses to analyse trends, administer the site, track usage, and gathe
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  • '''Credit Portfolio Model''' denotes any mathematical framework that aims to emulate the evolution of == Model Types ==
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  • * An undocumented risk model is only a computer program * A risk model that cannot be programmed is only a concept
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  • ...cribed as “a global (multi-regional) Environmentally Extended Supply-and-Use / Input-Output database”. ...ion related to agricultural and settlement activities for 15 types of land use.
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  • .... The required detail of that description is open-ended and depends on the use case and context. ...may require specialized additional attibutes and an underlying conceptual model for a meaningful description of the event. As an example the description of
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  • ...Stress Test | "bottom-up"]] in the sense that banks are requested to make use of their models but are subject to a number of [[Conservative Constraints i ...ation of impairments and the translation to available capital requires the use of statistical methods and includes the following main steps:
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  • '''IFRS 9 Model Validation''' refers to the policies and procedures that must be in place t Guidance on IFRS 9 Model Validation is provided in EBA's Guidance Paper<ref>EBA/GL/2017/06</ref> and
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  • ...fast high NPL portfolios should be reduced. These stakeholders will often use national or international benchmarks and peer analysis. * NPL risk is not normal part of the business model of banks and there is significantly less developed framework for understand
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  • ...and appropriateness of approved [[Pillar I]] internal models permitted for use by significant institutions when calculating own funds requirements Reduction of unwarranted variability in RWA as it relates to internal model outcomes, taking into account
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  • ...pool and additionally for the type of exposures covered by the relevant PD model as well as for any relevant calibration segment. ...observation period, but which were within the range of application of the model under consideration (‘missing
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  • * A set of [[Credit Rating Model | credit rating models]] * Credit markets make extensive use of various forms of explicit [[Financial Guarantee]] contracts or implicit
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  • ...imating LGD on non-defaulted exposures as they are in fact part of the LGD model * When estimating ELBE institutions should use the same RDS and the same methods for computing the long-run average LGD in
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  • ...ed with the selection of methods and quantitative methods underpinning the model. For the purposes of applying the MoC during the phases of model development, estimation and calibration institutions should consider:
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  • ...rtant component of the LGD estimations. In doing so, banks are required to model cure rates when estimating PDs and LGDs, and report them in the template CS ...aired Financial Asset]] in appendix A of the IFRS 9 regulation. Banks will use their own interpretation of definition of S3 for the starting point of the
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  • ...and Regulatory [[Pillar I | Internal Rating Based]] frameworks require the use of quantitative [[Credit Risk]] estimates. This entry summarizes their rel ! Aspect !! Internal Ratings-Based Model !! IFRS 9 Model
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  • ...management disciplines such as [[Market Risk]] or [[Credit Risk]] tend to use wider and mathematically more complicated risk metrics. ...hybrid. Quantitative metrics may involve a more or less complicated [[Risk Model]].
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  • ...he context of [[IFRS 9]] and [[Regulatory Stress Testing]]. It denotes the use of defined narratives ([[Scenario | scenarios]]) about the temporal develop ...actors]] underpinning the scenario are used in conjuction with [[Satellite Model | satellite models]] to assess the impact on the organization, portfolio et
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  • ...imating LGD on non-defaulted exposures as they are in fact part of the LGD model. ...t does not allow an accurate assessment of risk. Where an institution does use a constant charge, it should justify this. It should demonstrate that the c
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  • ** Management of Inherent Model Risk * Embedding and use in Business Operations
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  • ...ars (see paragraph 123(a) above) for each facility grade or pool that they use. When the LGD estimates result from combining different components (for exa ...LGD estimates (by facility grade or pool) or, if applicable, estimates of model components (including MoC) obtained by the institution are lower than those
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  • == Model Usage == ...anges are identified by splitting the full range of application of the LGD model into different parts on the basis of potential drivers for risk differentia
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  • ...ture the full impact of FX risk in credit performance, it is unlikely that use of such FX sensitive credit parameters with one of the capitalization optio ...oss rates. For transition rates, the impact should be based on [[Satellite Model | satellite models]] that link the macroeconomic scenario to the transition
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  • == Model Variations == * '''The Role of thresholds in model construction'''. For a large class of models, thresholds are ''inputs'' an
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  • ...ratings to financial and non-financial companies under the subscriber-pays model. ...Rating Platform. Consult www.Moodys.com for current information & terms of use.
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  • ...ures to obligors or facilities grades or pools, the data used to build the model must be representative of the population of the institution’s actual obli ...sis and/or qualitative argumentation) that the information gained from the use of the external data outweighs any drawbacks stemming from the deficiencies
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  • ...ny risk quantification systems (including data and algorithms) that are in use by a firm / organization without having been developed in-house ...ons should ensure in such cases that all relevant internal information for model development and parameter calibration is taken into account.
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  • A '''Probability of Default Model''' (PD Model) is any formal quantification framework that enables the calculation of a [ * at a PD model level when assigning exposures to different ranking/scoring methods;
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  • * the model should perform under different economic conditions. ...ignments or risk parameters estimates with caution, especially when making use of rating information or default experience obtained
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  • * when an internal model of a bank or other credit risk bearing firm targets external ratings provid A shadow rating model<ref>ECB guide to internal models - Credit Risk, Sep 2018</ref> (SRM) is an
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  • ...academic priority but to provide sufficient documentation for each listed model == LGD Model Classification ==
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  • ...thin the LGD grade. Institutions should demonstrate that the approach they use does not distort the actual observed loss. ...n the realised LGDs before the application of this floor in the process of model development for the purpose of risk differentiation<ref>Paragraph 6.3.2.4 o
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  • ...racteristics and these tend to be very important in determining fitness of use for particular risk applications ...e nature of the realized risk usually dictates which type is meaningful to use
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  • ...e functionality of various existing packages with the various steps of the model development / validation process. * models that use [[Financial Market Information]] such as observed [[Credit Spread | credit
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  • ...Region fields, e.g. 2013 for NUTS3 2013. All geographic region fields must use the same classification consistently for each underlying exposure and acros Use the same currency denomination as that used for this underlying exposure.
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  • ...Region fields, e.g. 2013 for NUTS3 2013. All geographic region fields must use the same classification consistently for each underlying exposure and acros ...odel|ESMA Automobile.Exposures.Model]] || ALPHANUM-100 || Name of the car model.
    27 KB (3,842 words) - 21:04, 12 February 2019
  • A '''Equity Correlation Matrix''' denotes a ''measure'' (or a ''model'') of ''dependency'' between different corporate entities that is inferred ...of investment portfolios (usually as component of a larger set of data and model assumptions)
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  • ...odels that underpin [[wikipedia:Modern portfolio theory]]. A mean-variance model is built on a limited set of parameters namely, mean, standard deviation an ...able return projections, have nice mathematical properties and are easy to use, interpret and understand.
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  • ...ation Matrix]] used in the context of a certain type of [[Credit Portfolio Model | credit portfolio models]] ...the liability structure of the firm. The underlying theory supporting the use of an asset matrix as input to estimating [[Default Correlation]] is that o
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  • A '''Business Model''' is the blueprint of how the resources, providers, clients, partners etc ...tionships and processes between external and internal actors. The business model describes the rationale of how an organization creates, delivers, and captu
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  • ...y identified ''subset'' of exposures under the scope of application of the model which is jointly calibrated. <ref>EBA Guidelines on PD estimation, LGD est ...or LGD model are jointly calibrated, the whole scope of application of the model is considered one calibration segment
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  • ...'' is used in the assignment of exposures to the grades or pools of a risk model Institutions may use human judgement in the application of risk model in the following cases:
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  • ...data and interpretations that may introduce significant subjectivity and [[Model Risk]] (but also - in principle - allow more forward looking risk assessmen
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  • * Quantitative Scorecards ([[Credit Scoring Models]]) that use exclusively or primarily quantitative inputs and algorithmic processing ([[ #the linear probability model
    3 KB (412 words) - 12:59, 7 September 2020
  • ...| performance characteristics]] for accepting the deployment or continuing use of the scorecard ...gulatory bodies involved. This may place constraints on data requirements, model explainability etc.
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  • ...cular purpose. All quantitative methodologies are subject to substantial [[Model Risk]] * Use the feedback functionality to request adding or removing a reference
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  • While any linear quantitative model shares some commonalities with a scorecard it is best to keep separate term The main reason scorecards see widespread use is because the technique allows non-quantitative staff to develop a risk an
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  • ...e a type of [[Credit Scoring Models | credit scoring model]] in widespread use to support [[Credit Decisioning]] in various [[Consumer Finance]] and [[SME This entry serves as the [[Abstract Risk Model]] specification of a Logistic Regression Scorecard
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  • An '''Integrated Assessment Model''' (IAM) is any model that attempts to integrate knowledge from two or more domains of expertise ...ions along a number of dimensions.<ref>TCDF 2018, Technical Supplement The Use of Scenario Analysis in Disclosure of Climate-Related Risks and Opportuniti
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  • ...any framework that aims to represent and categorize knowledge about [[Risk Model | risk models]] using semantic information technologies. This article documents a Risk Model Ontology (Description of a Model, DOAM)
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  • ...projects that adopt the [https://spdx.org/licenses/ open source licensing model] in the development of financial / insurance software. ...is achieved with the predominant use of open source software the business model is termed [[Open Source Finance]]
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  • ...t of [[Quantitative Risk Management]] as one of the first steps towards [[Model Development]] . Due to the reliance on data and sensitivity to [[Data Quali * Support the selection of appropriate [[Risk Model | models]]
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  • ...rganized along two dimensions: risk model use (which typically implies the model type) and borrower/product type. ! Use Case !! Retail Unsecured !! Retail Secured !!
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  • The scope of a risk data review varies depending on the context of the data use, the significance of decision making it supports etc. It would typically co ...ked to the specific use case. Risk data used for the development of [[Risk Model | risk models]] must meet requirements beyond the assessment of [[Data Qual
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  • * Ensure a measure of reproducibility in the context of [[Model Validation]] ...difficult to use reliably and portably. Many hardware floating-point units use the IEEE 754 standard.
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  • ...ny integer or real variable that is used in the representation of a [[Risk Model]], encoding [[Explanatory Variables]], [[Risk Factor]] or [[Risk Metric]] ...s by application. Numerical variables may include negative ranges (but the use of the complex domain is not usual except as a computational tool).
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  • ...are quantitative (statistical) scorecards ([[Credit Scoring Models]]) that use exclusively or primarily quantitative inputs and algorithmic processing ([[ ...statistical model, the predictive performance of scoring models exhibits [[Model Decay]], as both the borrower's own characteristics may change and the exte
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  • <li>Financial risk model complexity and quality are not necessarily correlated. But complexity is al ...risk assessment the fallback is polling expert opinion. Human experts will use analogy
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  • ...Representation data type: "Representation of an address spatial object for use in external application schemas that need to include the basic, address inf ...hod through which different Addresses can be converted from one conceptual model to another.
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  • ...oncept of Asset to accouting, book-keeping etc where it is measured should use this now term in place of the parent term "Asset". Note also that the moved
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  • ...ly in terms of its component parts. Where this would not add to the model, use the textual simple fact "Expression" instead.
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  • ...et data feed. When you model MBS you calculate Average Life as part of the model i.e. you estimate the percentage of prepayment in the next x length of time
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  • [[USEEIO]] is an environmental-economic model of US goods and services that can be used for life cycle assessment, footpr Environmentally-Extended Input-Output Model v2.0, W. W. Ingwersen et al. 2022</ref>
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  • ...ency, risk type and so on (as per Credit Facility generally). So one might use the borrowing for trade finance, revolving credit facility, straight draw-d
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  • ...ethodologies and is conducted by an appraiser or technology with a logical model that performs the same function. * As needed, use the worksFor property to connect appraisers to the appraisal management com
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  • A '''Prepayment Risk Model''' is a specialized quantification framework that aims to estimate the rang ...approaches to modeling prepayments, depending on the context and use of [[Model Outputs]].
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  • * Investors use securitization to obtain access (invest) in credit assets * Originators may use securitization as part of their [[Credit Portfolio Management]] tools
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  • ...the question: Where (as in what kind of device and operating system) can I use Python, R or Julia? ''NB: This is not a manual of how-to install Python or ...quality of documentation is an important factor in adoption and efficient use of a language as it both helps beginners learn new functionality and experi
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  • ...ther proposed [[wikipedia:Point process | point processes]] can be used to model temporal concentration. For use cases where an index type measure is appropriate the following steps provid
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  • ...''' denotes the categorization of different aspects and realizations of [[Model Risk]] into a consistent overall framework that may help with mitigating or A model risk taxonomy is related to the broader [[Risk Taxonomy]] that is applicabl
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  • ...k Data]]) that are used as mathematical inputs to be processed by a [[Risk Model]] There is a wide variety of possible model inputs:
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  • ...energy mixes complemented with the E3ME, a global macro-econometric model model that covers the global economy ...on (residential, services, agriculture, industry, transport and non-energy use); energy transformation (including power generation and heat, refinery and
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  • Individuals, companies and organizations more broadly can reduce their use of electricity by investing in energy efficient technologies and energy con ...transparent accounting of GHG emissions and reductions resulting from the use of sustainable electricity.
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  • ...put-Output Analysis]], Value Added is an additional ''row'' added to the [[Use Table]] or the [[Input-Output Matrix]] account for the other (non-industri ...www.openriskacademy.com/course/view.php?id=70 Crash Course on Input-Output Model Mathematics]
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  • ...loans, which must be compliant with specific requirements in terms of the use of funds, transparency and close monitoring of the projects that receive th ...after performing a technical assessment of the circularity of the business model;
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  • ...all loans or equities to projects for specific purposes (i.e., with known use of proceeds) that are on the balance sheet of the financial institution. Th * [[Borrowing Base]] Model
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  • ...valuate the development of appropriate IT systems and the soundness of the model validation process. ...arios on the economic value of equity and net interest income. Supervisors use regulatory reports together with outlier tests and different economic and f
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  • == Business Model Description == ...erates off balance sheet liquidity without creating additional leverage or use of credit facilities (as would be the case with a traditional loan facility
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  • == Business Model Description == ...with the [https://www.openriskmanagement.com/business-model-risk/ Business Model Risk identification framework]
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  • == Business Model Description == ...with the [https://www.openriskmanagement.com/business-model-risk/ Business Model Risk identification framework]
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  • == Business Model Description == ...avour of its suppliers. The buyer encourages its suppliers to consider the use of this Payables Finance programme; the suppliers make an independent decis
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  • == Business Model Description == ...are only made where the seller (the borrower) has, or will acquire through use of the loan monies, receivables arising from its business activities as a s
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  • Cloud computing describes a new consumption and delivery model for IT services based on the Internet, and it typically involves the provis * pay-per-use
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  • ...g the services of separate financial institutions or service providers and use their services acting on an interoperable basis.
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  • ...ing the services of the same financial institution or service provider and use its services to carry out intermediation functions of various kinds
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  • ...obability of Default]], e.g 3.5%, which may obtained directly from scoring model or via a [[Default Probability Table]] * Quantitative Scorecards ([[Credit Scoring Models]]) that use exclusively or primarily quantitative inputs and algorithmic processing ([[
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  • In the context of an [[Input-Output Model]], it is the use of IO tables and additional assumptions to assess the potential economic im ...Analysis | multipliers]], constitutes one of the most frequent uses of the model.
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  • | [[Business Continuity Maturity Model ]] | A model or recognised system of control categories that covers all internal control
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  • ...ent and use, thus resorting to techniques that aim to reproduce the target model up to a point but not in its entirety [[Category:Model Development]]
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  • World Input-Output tables and underlying data, covering 43 countries, and a model for the rest of the world for 2000-2014. Data for 56 sectors are classified Inter-country Supply-Use and Input-Output tables
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  • | [[Creditworthiness Assessment Model | Models for creditworthiness assessment and credit decision-making]] | [[Early Warning Indicators for Credit Risk | Use of early warning indicators/watch lists in credit monitoring]]
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  • * requirements and procedures regarding the acceptance and use of collateral and credit risk mitigation measures, to determine their effec ...l risk, taking into account the criteria set out in Section 4.3.4, and for model risk-related aspects of the EBA Guidelines on the supervisory review and ev
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  • ...del, credit risk exposure, complexity of the methods and the extent of the use of technology-enabled innovation. * Ensure that the management body has a sufficient understanding of the use of technology-enabled innovation, its limitation and the impact it has on c
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  • A '''Creditworthiness Assessment Model''' is any [[Credit Risk Model]] that is used by an organization to assess [[Credit Risk]] ([[Creditworthi ...opriate to the model’s use, including backtesting the performance of the model;
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  • | business model and, when relevant, corporate structure; Institutions and creditors may use the already available information and data for existing customers and borro
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  • * analyse the organisational structure, business model and strategy of the borrower, as set out below; ...d with a higher ESG risk, a more intensive analysis of the actual business model of the borrower is required, including a review of current and projected gr
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  • # analyse the [[Business Model]] and [[Business Strategy]] of the borrower, as set out below; ...d with a higher ESG risk, a more intensive analysis of the actual business model of the borrower is required, including a review of current and projected gr
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  • ...he model. If the confidence measure in the supporting advanced statistical model indicates low robustness, and/or other property-specific information gives When institutions use external valuers, they should establish a panel (a list) of accepted extern
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  • When institutions use external valuers, they should establish a panel (selection) of accepted ext ...institutions should ensure that they have obtained a clear and transparent model outcome, specifying the value of the collateral. Institutions should unders
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  • '''Statistical Models for Valuation''' are financial models that use granular data about assets and transaction prices to establish a [[Valuatio ...models’ proven track record, property-specific variables considered, the use of minimum available and accurate information, and models’ uncertainty.
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  • ...e a type of [[Credit Scoring Models | credit scoring model]] in widespread use to support [[Credit Decisioning]] in various [[Consumer Finance]] and [[SME This entry serves as the [[Abstract Risk Model]] specification of a Decision Tree Scorecard
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  • ...asures that can assess the fitness of a statistical model for its intended use
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  • ...d some form of implementation (e.g. spreadsheets) and formal monitoring of use. * the ''conceptual side'', which focuses on model development and which we might term the [[Data Science]] component
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  • ...data. Thus Akaike proposed a framework in which both model estimation and model selection can be simultaneously accomplished.<ref>Operational risk – Revi ...e likelihood of the function, log is the natural logarithm, and i is the i model (or PI) for which the AIC is computed.
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  • ...Segment | customers]]. Competitors may use similar or different [[Business Model | business models]]. [[Category:Business Model Risk Ontology]]
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  • For easier use of the glossary we classify terms according to context in which they arize. * '''Use Case''' is a general application domain where some type of federated analys
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  • == Use in the Open Risk Manual == ...ic_technology | semantic technology]] can be the starting point for a risk model ontology. The Open Risk Manual adopts the W3C. The [https://www.w3.org/OWL
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  • ...matrix will be just one quantitative element in broader toolkit of [[Risk Model Lifecycle | risk models]] ...must conform to formal requirements around [[:Category:Model Development | Model Development]], including explicit specifications about [[Data Quality]] etc
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  • ...ted from meteorological stations, radar and satellite imagery and computer model output to plot and forecast weather conditions; ...cal computer models of weather and climate for experimental or operational use;
    2 KB (322 words) - 11:56, 26 February 2021
  • * Use Manual Draughting Techniques * Use Technical Drawing Software
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  • * Model Sets * Use Personal Protection Equipment
    2 KB (260 words) - 12:07, 26 February 2021
  • ...urces and repositories provide consistent and reliable data. Data analysts use different algorithms and IT tools as demanded by the situation and the curr
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  • * Hybrid Model * Use Ict Ticketing System
    2 KB (244 words) - 12:09, 26 February 2021
  • * Model Optical Systems * Use Precision Tools
    3 KB (332 words) - 12:12, 26 February 2021
  • * Use Technical Drawing Software * Use Methods Of Logistical Data Analysis
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  • * Use Markup Languages * Use Access Control Software
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  • ...ost wax casting process. They may undertake the casting process (place wax model in casting ring, create moulds, pour molten metal into mould, or operate ce * Use Jewellery Equipment
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  • * Formulate A Case Conceptualisation Model For Therapy * Use E-Health And Mobile Health Technologies
    4 KB (417 words) - 12:13, 26 February 2021
  • * Use Cae Software * Use Specialised Design Software
    3 KB (348 words) - 12:13, 26 February 2021
  • ...esting modules of the CAD system and material consumption. Once the sample model has been approved for production, these professionals make series of patte * Use 3D Scanners For Clothing
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  • * Use Software Design Patterns * Use Software Libraries
    3 KB (297 words) - 12:15, 26 February 2021
  • * Use Gemstone Identification Equipment * Model Mineral Deposits
    1 KB (175 words) - 12:15, 26 February 2021
  • * Use Customer Relationship Management Software * Hybrid Model
    2 KB (199 words) - 12:16, 26 February 2021
  • * Use Ict Ticketing System * Outsourcing Model
    2 KB (192 words) - 12:16, 26 February 2021
  • * Use Technical Drawing Software * Use Non-Destructive Testing Equipment
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  • ...ect''': Software architects create the technical design and the functional model of a software system, based on functional specifications. They also design * Use Markup Languages
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  • ...cal placing of conductive tracks, coppers, and pin pads in the board. They use computer programmes and specialised software for the designs. * Use Cad Software
    1 KB (167 words) - 12:21, 26 February 2021
  • * Model Sets * Use Technical Documentation
    3 KB (399 words) - 12:21, 26 February 2021
  • ...and other physical aspects of the earth. They analyse various minerals and use scientific equipment to determine their structure and properties. Their wor * Use Earth Sciences Tools
    2 KB (218 words) - 12:21, 26 February 2021
  • * Use Repair Manuals * Use Precision Tools
    2 KB (267 words) - 12:21, 26 February 2021
  • * Outsourcing Model * Open Source Model
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  • '''Sculptor''': Sculptors may use a wide variety of materials to create sculptures, such as stone, clay, glas * Create Model
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  • * Use Technical Drawing Software * Use Cad Software
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  • * Use Technical Drawing Software * Use Precision Tools
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  • * Use Cad Software * Use Landscaping Service Equipment
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  • ...ptures or create photographic art. Art models are professional models that use their body to become the object of the artist's creation. * Artists' Model
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  • '''Music Therapist''': Music therapists use music-therapeutic interventions to treat patients with behavioural disorder * Use Therapeutic Communication Techniques
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  • * Use Technical Drawing Software * Use Cadd Software
    2 KB (190 words) - 12:43, 26 February 2021
  • * Use Cadd Software * Use Technical Drawing Software
    2 KB (189 words) - 12:43, 26 February 2021
  • * Model Optical Systems * Use Cad Software
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  • * Use Technical Drawing Software * Use Computer-Aided Engineering Systems
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  • * Formulate A Case Conceptualisation Model For Therapy * Use E-Health And Mobile Health Technologies
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  • * Use Technical Drawing Software * Build A Product'S Physical Model
    2 KB (239 words) - 12:44, 26 February 2021
  • ...lectromechanical engineers design and develop equipment and machinery that use both electrical and mechanical technology. They make draughts and prepare d * Model Electromechanical Systems
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  • '''Model Maker''': Model makers create three-dimensional scale models or various designs or concepts * Build A Product'S Physical Model
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  • * Open Source Model * Hybrid Model
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  • * Use Technical Drawing Software * Use A Computer
    2 KB (265 words) - 12:46, 26 February 2021
  • * Use Technical Drawing Software * Use Cad Software
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  • * Use Technical Drawing Software * Model Hardware
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  • ...measurements using geotechnical investigation methods and techniques. They model the mechanical behaviour of the rock mass and contribute to the design of t * Use Mine Planning Software
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  • ...ting variants and perform material consumption estimation. Once the sample model has been approved for production, they produce series of patterns for range * Use Communication Techniques
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  • * Model Optical Systems * Use Cad Software
    3 KB (288 words) - 12:47, 26 February 2021
  • ...institutions and companies. They prepare budget reports, review the budget model used in the company and ensure compliance with the budgeting policies and o * Use Office Systems
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  • * Model Sensor * Use Technical Drawing Software
    3 KB (306 words) - 12:48, 26 February 2021
  • * Use Technical Drawing Software * Use Manual Draughting Techniques
    1 KB (158 words) - 12:48, 26 February 2021
  • * Use Computer-Aided Engineering Systems * Use Technical Drawing Software
    2 KB (203 words) - 12:48, 26 February 2021
  • ...mproving relationships, capabilities, and problem-solving techniques. They use science-based psychotherapeutic methods such as behavioural therapy, existe * Formulate A Case Conceptualisation Model For Therapy
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  • '''Automotive Designer''': Automotive designers create model designs in 2D or 3D and prepare isometric drawings and graphics. They also * Use A Computer
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  • ...nditions through use of cognitive tools and appropriate intervention. They use clinical psychological resources on the basis of psychological science, its * Use Clinical Assessment Techniques
    5 KB (541 words) - 12:50, 26 February 2021
  • * Model Optical Systems * Use Cad Software
    3 KB (294 words) - 12:50, 26 February 2021
  • * Model Mineral Deposits * Use Earth Sciences Tools
    2 KB (171 words) - 12:50, 26 February 2021
  • * Use Computer-Aided Engineering Systems * Use A Computer
    2 KB (240 words) - 12:51, 26 February 2021
  • * Use Technical Drawing Software * Use Cad Software
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  • * Formulate A Case Conceptualisation Model For Therapy * Use Art In A Therapeutic Setting
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  • * Use Technical Drawing Software * Model Medical Devices
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  • ...formation received from the supervisor and from the technical sheet of the model. They apply techniques for ironing, creaming or oiling, for the applicatio * Use It Tools
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  • * Use Technical Drawing Software * Use Cad Software
    2 KB (233 words) - 12:52, 26 February 2021
  • * Use Technical Drawing Software * Use Cam Software
    2 KB (224 words) - 12:52, 26 February 2021
  • * Use Technical Drawing Software * Build A Product'S Physical Model
    2 KB (230 words) - 12:52, 26 February 2021
  • ...make series of patterns (grading) to produce a range of the same footwear model in different sizes. * Use It Tools
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  • * Use Technical Drawing Software * Build A Product'S Physical Model
    2 KB (283 words) - 12:52, 26 February 2021
  • * Use Cad Software * Use Technical Drawing Software
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  • * Use Technical Drawing Software * Model Electromagnetic Products
    3 KB (281 words) - 12:53, 26 February 2021
  • * Use Technical Drawing Software * Use Cadd Software
    2 KB (197 words) - 12:53, 26 February 2021
  • * Use Technical Drawing Software * Build A Product'S Physical Model
    2 KB (223 words) - 12:54, 26 February 2021
  • * Use Cad Software * Use Technical Drawing Software
    1 KB (176 words) - 12:54, 26 February 2021
  • * Use Manual Draughting Techniques * Use Cad Software
    2 KB (234 words) - 12:54, 26 February 2021
  • * Create A Product'S Virtual Model * Use Cad Software
    1 KB (156 words) - 12:54, 26 February 2021
  • * Use Cad Software * Use Technical Drawing Software
    2 KB (208 words) - 12:54, 26 February 2021
  • '''Material Stress Analyst''': Material stress analysts plan and use software to perform structural analyses including static, stability and fat * Use A Computer
    2 KB (222 words) - 12:55, 26 February 2021
  • * Model Electrical System * Use Technical Drawing Software
    2 KB (241 words) - 12:55, 26 February 2021
  • * Use Technical Drawing Software * Model Microelectronics
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  • ...incremental to any default risk captured in the bank's value at risk (VaR) model. The incremental default risk charge (IDRC) was incorporated into the tradi ...risk model recognition. Banks that have already received the specific risk model recognition under the 1996 Market Risk Amendment would not be required to i
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  • ...at is incremental to any default risk captured in the bank's value-at-risk model. The incremental default risk charge was incorporated into the trading book ...necessary. Furthermore, the Committee clarifies that it is permissible to use a weighting scheme for historical data that is not fully consistent with th
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  • ...incremental to any default risk captured in the bank's value-at-risk (VaR) model. The incremental default risk charge was incorporated into the trading book ...ling short-run P&amp;L volatility (eg backtesting requirements) allows the use of relatively short data windows for estimating VaR parameters (as short as
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  • ...made by banks in developing their economic capital frameworks, the further use and recognition of risk measures derived from these frameworks remain subje ...c Capital]], [[Operational Risk]], [[Market Risk]], [[Risk Management]], [[Model Validation]], [[Risk Measures]], [[Risk Aggregation]], [[Credit Risk]]
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  • ...incremental to any default risk captured in the bank's value-at-risk (VaR) model. The incremental default risk charge was incorporated into the trading book ...ling short-run P&amp;L volatility (eg backtesting requirements) allows the use of relatively short data windows for estimating VaR parameters (as short as
    7 KB (1,041 words) - 12:46, 26 March 2021
  • ...heir models on an ongoing basis. Backtesting is an integral element of the model validation process and the financial crisis has revealed that additional gu * Keywords: [[Backtesting]], [[Credit Risk Models]], [[Model Validation]], [[Counterparty Credit Risk]], [[Credit Risk]]
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  • ...heir models on an ongoing basis. Backtesting is an integral element of the model validation process and the financial crisis has revealed that additional gu
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  • ''Supervisory Framework For The Use Of "BACKTESTING" In Conjunction With The Internal Models Approach To Market ...ks. The essence of the technique is to compare actual trading results with model-generated risk measures. The other two papers in the package are an overvie
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  • ...-CCR limits the need for discretion by national authorities, minimises the use of banks' internal estimates, and avoids undue complexity by drawing upon p ...Future Exposure]], [[Current Exposure Method]], [[SA-CCR]], [[Non-internal Model Method]], [[Replacement Cost]], [[Standardised Method]], [[NIMM]], [[Counte
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  • ...is period. Looking forward, the Models Task Force believes that banks that use the internal models approach should continue to reassess the performance of
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  • ...is time, significant hurdles, principally concerning data availability and model validation, still need to be cleared before these objectives can be met, an
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  • ...that provide a view of the bank's level and composition of capital and the use of any hybrid capital instruments. </li> ...strong>; disclosure of the type of market risk models used (e.g. VAR), the model's parameters, the bank's policies and procedures for back testing and the d
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  • ...proving the transparency of the internal model-based approaches that banks use to calculate minimum regulatory capital requirements.</p> ...ith respect to the previous Pillar 3 disclosure requirements relate to the use of templates for quantitative disclosure accompanied with definitions, some
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  • ...es the Committee's June 2006 guidance which was based on the incurred-loss model of accounting. </p> ...in which the Committee expects internationally active banks to limit their use of particular simplifications and/or practical expedients included in the r
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  • <li>emphasising the need for early intervention and the use of recovery and resolution tools, and updating supervisory communication po ...as incorporating macroprudential assessments, stress testing and business model analysis, and reinforcing the importance of sound corporate governance at b
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  • ...iation in credit risk-weighted assets - constraints on the use of internal model approaches - consultative document''. ...iation in credit risk-weighted assets - constraints on the use of internal model approaches</em> sets out the Committee's proposed changes to the advanced i
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  • ..., and model performance (including data availability and the need for post-model adjustments).</p>
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  • ...Supervisors need to assess whether the use of the model, as opposed to the model itself, is in accordance with regulatory expectations and requirements.</p> * Keywords: [[Vendor Model]], [[Loss-given-default]], [[IRB]], [[Probability Of Default]], [[Exposure
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  • ...Model]] specification of a standardized [[Predictive Model]] in the [[Risk Model Ontology]] == Model Use Context ==
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  • ...uld include<ref>Towards Sustainable Businesses: Good Practices in Business Model, Risks and Opportunities Reporting in the EU, EFRAG, 2021</ref> * Incomplete or inapproriate use of corporate issue CO2 data
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  • ...backward-looking and forward-looking indicators tailored to their business model and complexity.
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  • ...two concepts have similar meaning. For example, some airlines may want to use the term Planes to describe their main component of their Property Plant an * '''requires-element'''. As its name indicates, taxonomy builders use it to force instance creators to enter the value of one element, if they pr
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  • Relationships files use parent-child hierarchies to model several different relationships, including presentation, particular cases
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  • ...ompiling an inventory, and it is particularly important to ensure that the model and the data collected are fair representations of the real world. <ref>201 * Improving models: Improving the model structure and parameterisation can lead to better understanding and charact
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  • Conceptually a Risk Score is a [[Risk Model]]. Implicit in the construction / compilation of the score is a casual, cau ...the rigor of formal [[Model Validation]] and assessment / management of [[Model Risk]] and thus suffer from [[Bias]] or [[Blind Spot]].
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  • NB: this table is not exhaustive. Cities may use alternative methodologies, activity data and emission factors as appropriat | ASIF model (Activity, Share, Intensity, Fuel)
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  • *** [[Use Case Diagram]] *** C4 Model (via additional macros included in standard library)
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  • ...lows of distinct activities and actions. Activity diagrams are intended to model both computational and organizational processes, as well as the correspondi ...m of activities. An activity itself can describe the implementation of a [[Use Case Diagram]]. At a very detailed level an activity diagram can also defin
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  • strengths of [[Input-Output Model]] modeling with [[Material Flow Analysis]] (MFA) ...ty in available datasets along with limited applications demonstrating the use of PIOT
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  • ...om an economic perspective. In the context of [[Environmental Input-Output Model]] this connection leads to the estimation of the environmental footprint (e * land use (LU)
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  • ...on in the context of [Input-Output Model]] is the Leontief model, a linear model based on Leontief production functions and a given vector of final demand. * Sectors use inputs in fixed proportions: Leontief production function
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  • ...g for more sophisticated temporal behavior <ref>Eurostat Manual of Supply, Use and Input-Output Tables, 2008 edition</ref>, <ref>R.E. Miller and P.D. Blai ...endent developments that cannot be represented in a stationary equilibrium model.
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  • ...raction (consumption and withdrawal). In the EEIO analytical context Water Use is one of the commonly considered [[Environmental Impact]] factors or stres ...on of the environmental multipliers by products follow the standard demand model of Leontief (1966), where environmental pressures per million euro Q are ca
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  • ...term ''Input-Output Table'' or [[Input-Output Matrix]]) is a mathematical model constructed from observed economic data which provides information about th ...ans of presenting a detailed analysis of the process of production and the use of goods and services (products) and the income generated in that productio
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  • ...[Input-Output Model]] to the more commonly used ''demand side'' [[Leontief Model]]. ..., Second Edition, Cambridge University Press, 2009</ref> but interpret and use them differently.
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  • ...IO) is an extension of the basic (implicitly single region) [[Input-Output Model]] that encompasses economies that operate under different jurisdictions.<re ...ns of consumption, be it for greenhouse gas emissions, land use, and water use. Input-output tables display the interconnection between different sectors
    7 KB (1,082 words) - 18:29, 16 November 2023
  • ...efers to adjustments that may be necessary to perform on an [[Input-Output Model]] that is constructed on the basis of imperfect data to ensure that any app * Total Supply must equal Total Use in a [[Supply And Use Framework]]
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  • ...scope, sector and product granularity, construction methodology, intended use and availability. The following is a partial list that focuses on the major ...a on socio-economic and environmental indicators at the industry level for use in a wide variety of applications.
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  • ...ented Leontief Model'' denotes any extension of the fundamental [[Leontief Model]] for input-output analysis. ...al pattern in generalized IO analysis is to link the core economic network model with satellited accounts or models that link economic phenomena to other di
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  • ...e typically based on a proprietary statistical model that is developed for use by credit data repositories. These credit repositories apply the model to borrower credit information to arrive at a credit score. When this term
    2 KB (315 words) - 16:25, 11 March 2023
  • ...e typically based on a proprietary statistical model that is developed for use by credit data repositories. These credit repositories apply the model to borrower credit information to arrive at a credit score. When this term
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  • ...r use by [[Credit Data]] repositories. These credit repositories apply the model to borrower credit information to arrive at a credit score.
    2 KB (235 words) - 16:23, 11 March 2023
  • ...d for use by credit data repositories. These credit repositories apply the model to borrower credit information to arrive at a credit score. When this term
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  • ...d for use by credit data repositories. These credit repositories apply the model to borrower credit information to arrive at a credit score.
    1 KB (217 words) - 18:07, 11 March 2023
  • ...e typically based on a proprietary statistical model that is developed for use by credit data repositories. These credit repositories apply the model to borrower credit information to arrive at a credit score. When this term
    1 KB (206 words) - 18:05, 11 March 2023
  • ...d for use by credit data repositories. These credit repositories apply the model to borrower credit information to arrive at a credit score. When this term ...d for use by credit data repositories. These credit repositories apply the model to borrower credit information to arrive at a credit score. When this term
    30 KB (4,662 words) - 12:30, 13 May 2024
  • * ''Strategy'' (SBM): how the undertaking’s strategy and business model(s) interact with its material impacts, risks and opportunities, including t ...uires the undertaking shall disclose its plans to ensure that its business model and strategy are compatible with the transition to a sustainable economy, a
    9 KB (1,271 words) - 15:30, 31 May 2023
  • ...duction of renewable resources (referred to in this Standard as ''resource use and circular economy'') in terms of material positive and negative actual o ...my, including its measures to help decoupling its economic growth from the use of materials
    2 KB (274 words) - 10:34, 10 May 2023