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Financial Innovation

Table 4 Example scorecard of a model risk assessment

From: Measuring the model risk-adjusted performance of machine learning algorithms in credit default prediction

Risk category

Darkness Score

% Regulatory capital

% Credit scoring

% Provisions

Statistics

2

7.9%

6.41%

6.38%

Technology

4

2.5%

3.09%

2.36%

Conduct

3

3.75%

5.13%

3.9%

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