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.

Yields Model Risk Management (MRM) Suite

Staying compliant with evolving regulations, especially across different countries, is challenging. The Yields MRM Suite provides advanced tools specifically designed to help with Model Risk Management regulations, ensuring you meet these specific requirements effectively.

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