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Food for Thought: Innovative Model Risk Management Theories to Consider in the New Year

Wed, 25 Jan 2012 11:58:32 GMT

We recently looked at several key areas of focus when it comes to effective model risk management in 2012. In Massimo Morini’s recent book, “Understanding and Managing Model Risk: A Practical Guide for Quants, Traders and Validators” (The Wiley Finance Series), he focuses on model risk and validation from a more theoretical approach. He explores the two different approaches to model validation set forth by the ‘Fathers of Quantitative Risk Management’-- Emanuel Derman, Professor at Columbia University, former Head of Quantitative Risk Management at Goldman Sachs, and author of “Models.Behaving.Badly” and Riccardo Rebonato, Head of Front Office Risk Management and...

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