Business and Personal Finance Dictionary
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
- MODEL RISK
The risk that incorrect or sub-optimal interest rate risk management decisions will be made because of errors in the model used to measure risk exposure. Errors may arise from inaccurate data input into the model, from inaccurate assumptions used in the simulation, and/or from errors in model logic or programming.Back