actuaris.nl

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!
AZL
Marktconform
Medior, Senior
Utrecht
Als Pensioenconsulent bij AZL ben je de schakel tussen pensioenfondsen en werkgevers: je voert looncontroles en werkingssfeeronderzoeken uit, rapporteert bevindingen, adviseert over pensioenregelingen en stemt af met bestuur en ketenpartners.
Marsh
Marktconform
Junior, Medior, Senior
Rotterdam
Als Finance Specialist Reinsurance bij Guy Carpenter Benelux beheer je herverzekeringscontracten en financiële stromen: contractinvoer en compliance, premie- en schadefacturatie, periodieke afrekeningen, cashflow en betalingen, claims, portefeuillecommutaties en audit trail.
Top vacature
ABN AMRO
7.896 - 11.279
Senior
Amsterdam
As a Model Risk Officer - Credit Risk at ABN AMRO, you own non-retail credit model risk governance, validation oversight, and risk reporting, challenge first-line model risk management, steer key...
Groen Van Solinge
Marktconform
Medior, Senior
Oegstgeest
Als Bestuurder en lid BAC Pensioenfonds Avery Dennison bij Pensioenfonds Avery Dennison stuur je beleggingsbeleid, vermogensbeheer en balansmanagement aan en geef je strategische richting aan de Wtp-transitie naar FPR per...