Users should always understand the ideas behind a model. Treating a model as a
black box is definitely a wrong approach. Devices that mysteriously come out with
an answer are potential sources of model risk. Generally, the persons that have built
the black box are no longer in contact with it, which makes things even worse.
Of course, many senior managers do not understand sophisticated mathematical
models. But the key is not there. The key is to understand the risks associated with
a model and its limits. Essential questions are: ‘Are you comfortable with the model
results? Which variables have a high likelihood of change? Where and why does a
small change in a variable cause a large variation in the results? What is the model’s
acceptance in the marketplace?’
Hiç yorum yok:
Yorum Gönder