Massachusetts Analytics developed user training materials for a complex quantitative simulation model.

Challenge

A multinational client had a series of complex models used in a variety of analyses.  The models were used across several businesses, requiring careful model parameterization for each use.  The client was comfortable that the models had been rigorously tested and well documented but was concerned about model risk arising from inconsistent or inappropriate model use. The model users relying on the output possessed varying quantitative backgrounds.

Solution

To help the client further reduce model risk, Massachusetts Analytics developed user training materials customized to the client’s models.  The materials were designed to improve user understanding of the models and to illustrate the justification for the model parameters and assumptions.

Massachusetts Analytics drew on decades of experience to develop modeling examples that closely mimicked actual market transactions, highlighting scenarios under which modeling questions could arise in practice.

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