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Models

Model Introduction

A model is any kind of equation that produces one or more output variables.

Common examples of models are:

  • A model that forecasts the probability of default for a loan account based on external/macroeconomic variable values and a set of estimated parameters
  • A model that estimates the covariance matrix between a set of risk factors based on historical values of those risk factors
  • A model that predicts the future value of a corporate bond based on scenarios for interest rates and credit spreads, and the terms of the bond itself.

Models can be created, imported, and viewed through the UI.

Creating Models

  1. Navigate to the Models tab.
  2. Create a new model by clicking the Model icon on the Models list panel on the left.
  3. In the Model Details section, enter a Model Name.
  4. In the Model Details section, select a Model Type from the drop-down menu.
  5. In the Model Details section, select a Model LOB from the drop-down menu.
  6. In the Model Details section, enter an optional Internal ID.
  7. In the Model Details section, enter an optional Pre-Process Flow.
  8. In the Model Details section, enter an optional Model Process Flow.
  9. In the Model Series section, add a model series by clicking the icon in the middle.
  10. In the Add Model Series pop-up screen, enter a link to a model document.
  11. In the Add Model Series pop-up screen, enter the model equations into the math editor. Then add the model series by clicking the Add button.

  12. In the Model Script section, select the language in which the model
    script will be articulated from the drop-down menu.

    Info

    The following languages are available for model scripts:

    • Plain Text
    • Golang
    • Python
    • SAS

  13. In the Model Script section, enter the model script in the model editor.

  14. Save the model by clicking the icon in the upper right corner. Then enter a comment in the Save Model pop-up screen and click the Save button.
  15. In the Model Process section, run the model by clicking the icon, and then click the Run button in the Run Options pop-up screen.