model risk
as defined in Directive 2013/36/EU of the European Parliament and of the Council of 26 June…, Article 3(1), point (11) (Definitions)
the potential loss an institution may incur, as a consequence of decisions that could be principally based on the output of internal models, due to errors in the development, implementation or use of such models
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Also defined in
- CRR 32013R0575, Article 4(1), point (12)
model risk as defined in point (11) of Article 3(1) of Directive 2013/36/EU