Model Risk Management - Management Solutions

Financial Risk ManagementQuantitative and qualitative aspects Design and LayoutMarketing and Communication DepartmentManagement Solutions - SpainPhotographsPhotographic archive of Management SolutionsFotolia Management Solutions 2014 All rights reserved. Cannot be reproduced, distributed, publicly disclosed, converted, totally or partially, freely or with a charge, in any way or procedure, without the expresswritten authorisation of Management Solutions . The information contained in this publication is merely to be used as a guideline. Management Solutions shall not be heldresponsible for the use which could be made of this information by third parties. Nobody is entitled to use this material except by express authorisation of summaryElements of an objective MRM frameworkModel risk quantification4818 Model risk definition and regulations1226 Bibliography36 Glossary37 Management SOLUTIONSM odel Risk Management - Quantitative and qualitative aspects 4 Introduction5In recent years there has been a trend in financial institutionstowards greater use of models in decision making, driven inpa

7F orex amp l, thL ndW c sw iu v $6.2b JPMorgan in 2012. This falls within the OTC derivatives market, which had an exposure of almost $700 trillion in June 2013; see BIS (2013); or the incorrect valuation of risk in some derivative instruments, which was one of the causes of the subprime crisis in the US in 2008. 8O C -Fed( 20 1 ). 9Ibid. 10 Ibid.

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  Model, Management, Risks, Valuation, Model risk management

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