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What are the types of model risk
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35 votes
35 votes
What are the types of model risk

User Jammur
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1 Answer

21 votes
21 votes
1. Wrong model.
2. Model implementation.
3. Model usage.
4. Uncertainty on volatility.
5. Time inconsistency.
6. Correlation uncertainty.
7. Complexity.
8. Illiquidity and model risk.
User Andre De Boer
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