Danielsson, Jon, James, Kevin R., Valenzuela, Marcela and Zer, Ilknur (2014) Model risk and the implications for risk management, macroprudential policy, and financial regulations. VoxEU.
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: | Article |
|---|---|
| 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 |
| Date Deposited: | 22 May 2015 11:25 |
| Last Modified: | 15 Sep 2023 15:05 |
| URI: | http://eprints.lse.ac.uk/id/eprint/62065 |
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