Chapter 7 Implementing Risk Models
In this chapter we demonstrate step by step how to build and implement risk models in an evolutionary iterative way within a well-organised framework. We show how to create and use checklists to shape and support the risk model implementation effort, and how to master the meta-, input, and output data that you need for your risk models within the framework of the data model blueprint introduced earlier.
7.1 Risk Model Implementation—Step by Step
When implementing risk models it is helpful to follow and implement a number of logical steps. We distinguish five main steps, depicted in Figure 7.1, that will be discussed at full length in the subsequent sections.
- 1. Compose the Risk Model Structure: Decide on ...