Glossary

What is Model Specification?

Model Specification definition
January 21, 2025
Model Risk Management

Model specification is a description of the model behaviour.

Each item in the description can be mapped to a collection of one or more model expectations.

As one example, an item in the specification of a valuation model will be that the NPV produced by the model should move smoothly with varying inputs.

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Behind Yields is a team of experts in risk, regulation, and technology. When we write as Yields, we share our combined knowledge to make complex topics clear and actionable.

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