Validating financial models busty spanish girl maria and her cute classmate wendy
Once developed, companies are required to have independent and comprehensive validations performed in order to evaluate model risks.
Prescio maintains a holistic approach to model validation by first developing a complete map of the entire modeling process and the operations environment.
The approach then focuses on data inputs, key assumptions, and sound theoretical formulation and documentation.
Prescio maintains an in-house operational risk model that merges a Bayesian methodology with the Loss Distribution Approach (LDA).
We use this in-house model for comparison when externally validating a given operational risk framework.