Models continue to increase their already broad use across industry as well as their sophistication. Worldwide regulation oblige financial institutions to manage and address model risk with the same severity as any other type of risk, e.g. Federal Reserve (SR 11-7) (2011), which besides defines...

The aim of this contribution is to emphasize the importance of differential geometry within the financial modeling and usage process. The paper aims specifically at encouraging the inclusion of differential geometry to improve on the usage of a given model, and to reduce the inherent model...