Monte Carlo simulation is one important technique that has emerged as crucial to effective risk...
dynamic financial analysis (DFA)
Dynamic financial analysis is the name for a class of structural simulation risk model of insurance company operations, focusing on underwriting and financial risks, designed to generate financial pro forma projections.
Additional Information
Statistical modeling techniques that project an outcome not on a static basis—that is, under one set of defined assumptions or the same assumption with one or two variables changed—but to project a range of possible outcomes assuming constant movements in interrelated variables.
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