5.6 Other practical challenges

Question 1

Ashby outlines common practical challenges surrounding risk models:

• risk models have become increasingly c______
• balancing multiple o_______ from different risk models meant to estimate the same risk
• risks are i____________ while many models only address individual risks one at a time
• in financial services, the number of regulatory risk models has grown e______________ since 2008

Answer 1

complex
outputs
interconnected
exponentially

Question 2

Ashby offers remediation strategy’s for overcoming risk managing difficulties:

• instituting an appropriate e___________ data management strategy
• utilising the b______ in oversight of risk structures.

Answer 2

enterprise

board