Interesting piece in Ops Risk & Regulation on scaling of data in loss analysis. Intro:

“An issue for op risk managers is scaling modelling data to a relevant size without sacrificing its value through over-manipulation. Using a query model to determine which data to use makes the process easier and reduces the risk of cherry-picking favourable data points”

 

Full article here: http://www.risk.net/operational-risk-and-regulation/feature/2164036/-loss-scaled

Advertisements

Posted by Carlos Alvarenga

Carlos Alvarenga is the Executive Director of World 50 ThinkLabs and an Adjunct Professor at the University of Maryland's Smith School of Business.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s