Careerguide

The Data Conundrum for Risk Modelers

Nieuws
28-03-2024
Tony Hughes
Forecasts, scenario projections and other types of model output are not data. They are subject to error and potential bias, and risk managers would do well to keep this in mind when they are validating models.

Article Tony Hughes, 

Forecasts, scenario projections and other types of model output are not data. They are subject to error and potential bias, and risk managers would do well to keep this in mind when they are validating models.

Risk modelers today face a myriad of challenges, ranging from scenario analysis to forecasting to validation. But when modelers use a loose definition of the term “data,” bad habits can form quickly, creating problems they must understand and protect against.

If you research the etymology of "data," you will find that its original meaning is closely tied to the concept of a fact, something that is known or generally assumed to be true.

In modern times, however, usage of the word has expanded to include pretty much anything that can be stored in a spreadsheet. Forecasts and scenario projections are often referred to as "data," and I've even seen output from Monte Carlo simulations described in the same way. I suspect this is because computer scientists define the term very broadly to include anything that can be stored on a server.

Lees verder >>


Lees verder op: garp.org

Gerelateerde vacatures

Geïnteresseerd in een carrière bij organisaties in ditzelfde vakgebied? Bekijk hieronder de gerelateerde vacatures en vind de perfecte match voor jou!
Top vacature
AFM
65.000 - 100.000
Medior
Amsterdam
Als Actuaris team Pensioenen bij AFM voer je doorlopend toezicht uit op de pensioensector. Je identificeert en analyseert risico's, werkt aan multidisciplinaire projecten en draagt bij aan de transitie naar...
Top vacature
Deloitte
In overleg
Junior, Medior
Amsterdam
Als Junior Manager Financial Risk Management - Actuarieel bij Deloitte leid je projectteams en bedien je belangrijke klanten binnen de verzekeringssector. Je bouwt modellen, beheert stakeholders en draagt bij aan...
NN
10.006 - 14.294
Senior
Rotterdam
As Head of Financial Risk at NN Life & Pensions, you lead a team to manage financial risks, ensuring responsible investment decisions and long-term stability. You transform complex data into...
Molenaarspensioenfonds
In overleg
Senior
Rijswijk
Als Lid RvT Risicomanagement, uitbesteding en IT Molenaarspensioenfonds bij MPF fungeer je als gesprekspartner voor bestuur en fondsorganen. Je focust op niet-financieel risicomanagement, uitbesteding en IT, waarbij expertise in organisatiebestuur...