Model Development

Every business entity uses quantitative models. Institutions use quantitative models to run key aspects of their businesses such as to efficiently identify prospective customers, to support marketing to improve customer penetration and retention rates, to determine capital allocation, manage liquidity risk, measure and determine reserves, and much, much more. The era of big data is here to stay.

How do you target these models to fit your specific needs? Do you use an off-the-shelf product and “make it work” without having it refined to your specific industry and needs? Or do you develop models in house. Are you sure you are staying up to date with regulatory changes that could impact your model usage and measurements? Are your models producing the intended outcomes and supporting your business growth?

With the speed of change in customer behavior and the heightened regulatory environment impacting model development and governance standards, you need a team that understands how to build, calibrate, implement and translate models into the information necessary to meet your business goals and to stay in compliance.

We bring a team of experts in building detailed analytic models to address individual client needs.

We stay current on the best practices that are crucial to the relevancy of quantitative models.

And we understand the regulatory environment and can help our clients develop the governance framework necessary to ensure ongoing compliance standards are met.

For allegations of diminished property or asset values, large scale models are needed of values based on past sales, incorporating temporal and geographic components. The goal is to establish a formal framework for testing and for estimation.

Are properties near an environmentally damaged site stigmatized, is there a common basis for measurement of loss if such exists, and how extensive is the alleged loss?

For commercial properties, is a concentration of these properties in a bank’s portfolio a problem in increased risk because of the correlation between defaults?

We apply complex financial and statistical analyses to groups of properties or assets to get a realistic and defensible valuation.

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