Home > Glossary

Structural Risk Modeling Methods

Structural Risk Modeling Methods


Models based on explicit cause and effect relationships, not simply statistical relationships such as correlations. The cause/effect linkages are typically derived from both data and expert opinion. The principal advantage over statistical methods is the ability to examine the causes driving certain outcomes (e.g., ruin scenarios) and the ability to directly model the effect of different decisions on the outcome.

Related Products

User ID: Subscriber Status:Free