Regulatory compliance has significantly altered the model development and validation landscape, while increasing the amount of data to be validated.
Institutions that depend on poorly designed models or err in model output can miss opportunities or keep management from identifying major threats on the horizon. However, testing model inputs, calculations, and outputs can instill confidence that management decisions are based on reliable information.
Moody’s Analytics was recently named a Category Leader in Model Validation Solutions, 2019, a new Chartis Research report that assesses 10 leading model validation vendors. This report evaluates seven core capabilities: data input, model analytics and pricing, reporting, suitability, workflow, and predictive capability.
Join Chartis Research and Moody’s Analytics as we discuss ways institutions can adopt effective model validation techniques and processes amid an expanding technological and regulatory environment.
- How model validation – and attitudes to it – have changed
- Dealing with fundamental data challenges
- The future state: transparency, explainability, and interpretability
The ongoing discussion and analysis of climate risk and financial system stability has included a number of climate risk trials, case studies, and experimental stress tests.
This document discusses the development of Moody’s Analytics next-generation corporate credit risk solution. We launched this initiative with the purpose of enhancing our highly regarded models, leveraging innovative data and state-of-the art modeling techniques.
This report offers our observations on key stakeholder climate reporting expectations, financial institution climate reporting approaches, and recommendations on how these can be facilitated within the US banking sector.
América Latina enfrenta una de las peores recesiones del último medio siglo como resultado de los efectos negativos causados por la pandemia del COVID-19.
The traditional loss-minimizing approach to managing corporate trade credit can keep write-offs low but may be overly conservative.
La pandemia del Coronavirus se ha acelerado y ha infectado a muchas regiones, incluyendo a América Latina.
Traditionally, corporate trade credit limits have been set based on customer size, an internal or external credit score, and a qualitative sense of risk appetite. These limits have been effective in minimizing write-offs, principally because they are conservative.
Company AA, a U.S.-based transportation company, defaulted in August, 2018. The Moody’s Analytics EDF™ (Expected Default Frequency) metric and Early Warning Toolkit highlighted the company’s rising default risk 33 months before default. This case study details how the EDF measure and Early Warning Toolkit can assess risk.
We describe how model validation can be an important value-adding tool rather than a mere regulatory requirement.
Climate change and its increasing economic toll on businesses in different sectors of the economy is discussed, including how to operationalize the response to climate change risk, given stakeholder need. Also discussed is the linkage between environmental risk and other ESG risk factors to security returns and measures of credit risk.