Managing Risk of Financial Models : A Smart and Simple Guide for the Practitioner

How can a reputable hedge fund with sophisticated financial models collapse? Why do two borrowers with similar FICO scores pay different mortgage rates? What is the hype about stress testing for big banks? This book is for you if: You are a math nerd considering a career in finance You financial institution is trying to grow its nascent model risk management program You are interested in risk management This book is a simple, step-by-step guide to how top institutions determine what is a model, how to identify, assess, and mitigate model risk, and how to report to senior management. Using practical examples, this book gives an overview of the state of the art methods applied in establishing and maintaining a strong model risk management program at a financial institution.