S2015 Q19
For part d., is it fair to say that "Due to the proprietary nature of the internal models, regulator wouldn't have access to all data used; kind of a black box"?
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For part d., is it fair to say that "Due to the proprietary nature of the internal models, regulator wouldn't have access to all data used; kind of a black box"?
Comments
I think companies would provide/ be required to provide the data used and the results of the model. Just maybe not all the details of the model. . . and that is not very convincing to me either. The purpose of this model is to convince regulators of your financial health, and you won't achieve this by hiding how you arrived at your conclusion. But transparency/black box was given as a point of contention, so I guess that's an acceptable answer.