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RISK MANAGEMENT MAGAZINE Vol. 16, Issue 2 May August 2021EXCERPT https://www.aifirm.it/newsletter/progettoeditoriale/Why segmentation matters: a Machine Learning approach for predicting loan defaults
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A machine learning approach refers to methodologies and techniques used to develop algorithms that enable computers to learn from and make predictions or decisions based on data.
Individuals or organizations that are utilizing machine learning models for commercial purposes or must adhere to regulatory requirements related to data processing and algorithmic accountability.
Filling out a machine learning approach typically involves providing information about the algorithm, data sources, intended use, risk assessment, and compliance with relevant regulations.
The purpose of a machine learning approach is to enhance decision-making processes, automate tasks, improve accuracy in predictions, and derive insights from large volumes of data.
Information that must be reported includes model descriptions, data sources, performance metrics, ethical considerations, and potential biases.
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