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model risk (EN)
phrase

phrase “model risk”

  1. the chance that a financial model is wrong or used incorrectly, causing financial losses
    The bank suffered losses because of model risk when their financial model failed to predict the market downturn.
  2. the risk that any model used to make predictions or decisions is not accurate, leading to mistakes
    Engineers must account for model risk to ensure their designs will work correctly in the real world.