Cookies?
Library Header Image
LSE Research Online LSE Library Services

Model risk and the implications for risk management, macroprudential policy, and financial regulations

Danielsson, Jon and James, Kevin R. and Valenzuela, Marcela and Zer, Ilknur (2014) Model risk and the implications for risk management, macroprudential policy, and financial regulations. VoxEU.org (08 Jun 2014). Opinion Piece.

Full text not available from this repository.

Abstract

Risk forecasting is central to financial regulations, risk management, and macroprudential policy. This column raises concerns about the reliance on risk forecasting, since risk forecast models have high levels of model risk – especially when the models are needed the most, during crises. Policymakers should be wary of relying solely on such models. Formal model-risk analysis should be a part of the regulatory design process.

Item Type: Website (Opinion Piece)
Official URL: http://www.voxeu.org/
Additional Information: © 2015 The Authors
Divisions: Finance
Financial Markets Group
Systemic Risk Centre
Subjects: H Social Sciences > HA Statistics
H Social Sciences > HG Finance
Sets: Departments > Finance
Research centres and groups > Financial Markets Group (FMG)
Research centres and groups > Systemic Risk Centre
Date Deposited: 22 May 2015 11:25
Last Modified: 29 May 2015 16:14
URI: http://eprints.lse.ac.uk/id/eprint/62065

Actions (login required)

View Item View Item