Understanding and quantifying the model risk inherent in loss projection models used in the macroeconomic stress …-structure consistent with the exponential tilting adjustment. The relative entropy approach to model risk we use has its foundation in … economics with robust forecasting analysis and has recently started to be applied in risk management. The technique can …

; (iii) a novel set of climate-specific models to capture the direct and indirect transmission channels of climate risk …

This paper incorporates uncertainties of model risk in a stress scenario for house prices. Our approach consists of … observed in the Great Recession. The derivation of confidence intervals, furthermore, provides buffers for model risk. For … example, while regulatory capital may use the point estimate of the quantile of the distribution, risk management …

success.• Businesses operating in different geographies with ranges of products and services are valuable, to leverage risk … markets and countries.• Geopolitical risk is the highlighted concern in regions with diversity such as Europe, the Middle East …

To deal with the so-called transition risk implied by climate change, investment banks are asked to produced scenario … exploring other ways to deal with transition risk, especially through liquidity …