BY ARTHUR R. PREISS, Ph.D., AND STEPHEN E. SUDHOFF, CFA
MODELS help us think about our world in a structured way. As credit products have become more complex and computing power has become cheaper and more accessible, analysis of more complex relationships has become easier.
And, as our world has become more complex, our need for models has grown
to help us think about various issues, and devise solutions to these issues.
Model usage in compliance has also grown because models are a cost-effective
way of dealing with the regulatory burden.
Can Play a Leading
Role in Compliance