There is an old joke that defines economists: They spend their days looking at reality and wondering if it would work as a model. While it is undoubtedly a little harsh, it highlights both the ...

Consider this. The global GDP stands at 102 trillion dollars, but that is dwarfed by the global derivatives market which is over 950 trillion dollars. This stark contrast underscores the central role ...

Models are everywhere. Many organizations use models for facilitating the decision-making process, for accounting and tax purposes, and for managing day-to-day operations. In fact, organizations are ...

The PRA’s new supervisory statement extends banks’ model risk management obligations “across all models” - not just capital and stress testing. What steps must banks take to comply? Despite last ...

Although executives often talk of new business models, the more important challenge in business today is understanding and embracing a new management model. Most executives still don’t know the ...