In Search of a Post-Pandemic Modeling Paradigm – Risk Weighted

Nice post from Tony Hughes discussing the difference between modelling intended to forecast a most likely outcome and modelling tail risk …

“A forecasting mindset yields very tight models, whereas a tail risk mindset demands a far more liberal approach to model specification.”

— Read on riskweighted.com/2021/03/03/in-search-of-a-post-pandemic-modeling-paradigm/

Author: From the Outside

After working in the Australian banking system for close to four decades, time to read, write and reflect on what I have learned. My primary area of expertise is bank capital management but this blog aims to offer a bank insider's outside perspective on banking, capital, economics, finance and risk. View all posts by From the Outside