Paper1996
Model Risk
Emanuel Derman
Argues that a pricing model is at best a crude, leaky map from a small number of observable parameters to a price, and catalogues the specific ways this map breaks down in practice.
FreeIntermediate
Finance & Investing · Risk Management
Model Risk
A topic within Risk Management, itself one of 11 topics in that field and part of Finance & Investing.
Reading on Model Risk
22 works
Report2011
Guidance on Model Risk Management
Board of Governors of the Federal Reserve System & Office of the Comptroller of the Currency
Sets out supervisory expectations that banks treat every model as a simplification that can be wrong in ways that matter, and requires independent validation of a model's conceptual soundness, not just its outputs, as the core discipline for managing model risk.
link checked 17 Sept 2026FreeIntermediate