Machine Learning Algorithms As Core of the Deliverables in Application of Analytics to Successful Businesses

Some of the Analytics Methods
Strategic Analytics
Operations Analytics
Analytics Methods for External Data
Risk Selection Analytics
Basel II Operational Risk Analytics
Premium Risk Analytics
Credit Risk Analytics
Market Risk Analytics
Interest Rate Risk Analytics
Exchange Risk Analytics
Asset/Liability Matching Analytics
Pricing Analytics
Liquid Risk Analytics
Capital Management Analytics
Model Validation Techniques

If you want to have conversation on some of these methods, please feel free to contact me but that will depend on how much time I have but will try to respond:
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Strategic Analytics Methods

Qualitative

  • Value Chain Analysis

  • Consumer Survey

  • Program Evaluation and Review Technique (PERT)

  • TOWS matrix (SWOT)

  • Five forces

  • Competency-based design and reengineering

  • Cognitive mapping

  • Soft systems methodology (SSM)

  • Viable systems model (VSM)

  • Hierarchical functional model

  • Resource-based analysis

Semi-Quantitative

  • Tobin´s q

  • Intangible Assets Monitor

  • Brand Equity

  • System dynamics

  • Balanced Scorecard

  • Real options

  • Scenario analysis

  • Capital investment appraisal

  • Critical systems heuristics (CSH)

  • Sensitivity analysis

  • System dynamics models

  • Rate of return analysis

  • Network hierarchical nesting

  • Strategic assumption surfacing and testing (SAST)

  • Correlation

  • Covariance

  • Interpolation

  • Extrapolation

Quantitative

  • Cluster Analysis

  • Conjoint Analysis

  • Principal Components Analysis

  • Correspondence Analysis

  • Fuzzy Classification

  • Ordinary Least Squares (OLS)

  • Generalized Least Squares (GLS)

  • Generalized Linear Models (GLM)

  • Game theoretical models

  • Polynomial Regression

  • Partial Least Squares Regression

  • Multidimensional Scaling (MDS)

  • Classification Trees

  • Multivariate Analysis of Variance or Covariance

  • Times Series Forecasting

  • Econometric Modeling

  • Linear Mixed Models or Residual Maximum Likelihood (REML)

  • Structural Equation Models

Analytics Methods To Use on External Data for Example like the Economic Variables

Quantitative

  • Time Series Analysis

    • ARIMA and ARMAX Models

    • ARCH and GARCH Models

    • Prais-Winsten Regression

    • Vector Autoregression (VAR)

    • Structural Vector Autoregression (SVAR)

    • Vector Error Correction Models (VECM)

    • Nonparametric Time Series Analysis (CAFPE)

    • Smooth Transition Regression (STR)

    • Cointegration

  • Simultaneous-Equation Models

Basel II Operational Risk Measurement Approaches

 

Quantitative

  • The basic indicator approach (BIA)

  • The standardized approach (SA)

  • Advanced measurement approaches (AMA)

Some Premium Risk Analytics Methods

 

Semi-Quantitative

  • Scenario analysis

  • Sensitivity analysis

  • Correlation

  • Covariance

  • Interpolation

  • Extrapolation

 

Quantitative

  • Probability distributions

  • Maximum loss

  • Cluster Analysis

  • Conjoint Analysis

  • Principal Components Analysis

  • Fuzzy Classification

  • Ordinary Least Squares (OLS)

  • Generalized Least Squares (GLS)

  • Generalized Linear Models (GLM)

  • Game theoretical models

  • Polynomial Regression

  • Partial Least Squares Regression

  • Multidimensional Scaling (MDS)

  • Multivariate Analysis of Variance or Covariance

  • Times Series Forecasting

  • Econometric Modeling

  • Linear Mixed Models or Residual Maximum Likelihood (REML)

Some Credit Risks Analytics Methods

Semi-Quantitative

  • Stress Testing

  • Scenario Analysis

  • Sensitivity Analysis

  • Backtesting

Quantitative

  • Individual Loan

    • Default Risk Models

    • Credit Scoring Models

      • Linear Probability Model (LPM)

      • Logit Model

      • Probit Model

      • Discriminant Model

      • Neural Network (Especially the Probabilistic Neural Network Classifier (PNN) family)

      • Altman Z-score model

    • Term Structure Derivation

    • RAROC Models

    • Option Models

    • CreditMetrics

    • Credit Risk+

    • KMV Model

    • Mortality Rate Derivation

  • Loan Portfolio

    • Loan Concentration Risk Models

    • Portfolio Diversification

    • KMV Portfolio Manager Models

    • Loan Volume-Based Models

    • Loan Loss ratio models

    • Regulatory models

  • Factor Analysis and Factor Loadings

  • Stochastic Risk Measures

  • Mark-to-Market approach

  • Risk-neutral valuation (RNV) approach

  • Extreme Value

  • Maximum loss

Basel II Credit Risk Measurement Approach

  • The Standardized Approach

    • Simplified standardized approach

  • Internal Rating-Based Approach

    • Foundation Approach

    • Advanced Approach

  • Asset securitization

    • Standardized Approach

    • Internal Rating-Based Approach

Some Liquidity Risk  Analytics Methods

Semi-Quantitative

  • Stress Testing

    • Scenario Analysis

    • Sensitivity Analysis

  • Backtesting

Quantitative

  • Liquidity at risk (LaR)

  • Liquidity adjusted VaR

    • Exogenous spread

    • Discount approach

    • Transaction cost

    • Derivative pricing

Some Pricing Risks Analytics Methods

Semi-Quantitative

  • Stress Testing

    • Scenario Analysis

    • Sensitivity Analysis

  • Probability Distributions

Quantitative

  • Increasing limit factor (ILF)

  • Pure premium

  • Target Loss Ratio Approach

  • Capital-Based Cat Pricing

  • Cluster analysis

  • Conjoint analysis

  • Ordinary Least Squares (OLS)

  • Generalized Least Squares (GLS)

  • Generalized Linear Models (GLM)

  • Polynomial Regression

  • Partial Least Squares Regression

  • Multidimensional scaling (MDS)

  • Classification Trees

  • Multivariate Analysis of Variance or Covariance

Capital Management - (Allocation, Economic, Regulatory and Cost of Capital)

 

Semi-Quantitative

  • Stress Testing

    • Scenario Analysis

    • Sensitivity Analysis

  • Backtesting

 

Quantitative

  • Liquidity at risk (LaR)

  • Liquidity adjusted VaR

    • Exogenous spread

    • Discount approach

    • Transaction cost

    • Derivative pricing

Operations Analytics Methods

Qualitative

  • Value Chain Analysis

  • Consumer Survey

  • Means-ends analysis

  • Value analysis

  • Hierarchical functional model

  • Resource-based analysis

Semi-Quantitative

  • Probability distributions

  • Scenario-based models

  • Sensitivity analysis

  • Bayesian analysis

  • System dynamics models

  • Rate of return analysis

Quantitative

  • Cluster Analysis

  • Conjoint Analysis

  • Principal Components Analysis

  • Correspondence Analysis

  • Fuzzy Classification

  • Causal Modeling

  • Human capital monitor

  • Network analysis

  • Decision trees

  • Frequency distribution models

  • Severity distribution models

  • Loss distribution approaches

  • Neural networks

  • Design of Experiments

  • Maximum Likelihood Estimation (ML)

  • Moment Estimation Method (MLE)

  • Quantile Estimation Method

  • Poisson Models

  • Negative Binomial

  • Extreme Value Theory (EVT)

  • Generalized Pareto Distributions (GPD)

  • Ordinary Least Squares (OLS)

  • Generalized Least Squares (GLS)

  • Generalized Linear Models (GLM)

  • Game theoretical models

  • Polynomial Regression

  • Partial Least Squares Regression

  • Multidimensional Scaling (MDS)

  • Classification Trees

  • Multivariate Analysis of Variance or Covariance

  • Times Series Forecasting

  • Econometric Modeling

  • Linear Mixed Models or Residual Maximum Likelihood (REML)

  • Structural Equation Models

Risk Selection Analytics

 

Semi-Quantitative

  • Probability Distributions

  • Scenario Analysis

  • Sensitivity Analysis

  • Rate of return analysis

 

Quantitative

  • Random variables and distributions

  • Expectations and moments

  • Probability distributions

  • Maximum likelihood

  • Claim frequency and claim size analysis

  • Experience rating

  • Exposure rating

  • Bayesian method

  • Maximum loss

  • Ordinary Least Squares (OLS)

  • Generalized Least Squares (GLS)

  • Generalized Linear Models (GLM)

  • Polynomial Regression

  • Partial Least Squares Regression

  • Multidimensional scaling (MDS)

  • Classification Trees

  • Multivariate Analysis of Variance or Covariance

Some Market Risks Measurement Methods

 

Semi-Quantitative

  • Stress Testing

  • Scenario Analysis

  • Sensitivity Analysis

  • Backtesting

 

Quantitative

  • Probability distributions

  • Financial Mathematics/ Derivatives Measures. E.g: delta, gamma, rho, vega, theta

  • Mean-Variance

  • Gap Analysis

  • Duration Analysis

  • Capital Asset Pricing Model (CAPM)

  • Modified Form of CAPM

  • Correlations

  • Covariances

  • Copulas

  • Downside risk measures

  • Cash flow at risk (CFAR)

  • Earnings at risk (EAR)

  • Capital at risk

  • Delta-Gamma

  • Parametric VaR

  • Historical Simulation

  • Monte Carlo Simulation

  • Arbitrage Pricing

  • Principal Components Analysis

  • Factor Analysis and Factor Loadings

  • Coherent Risk Measures

  • Option Pricing

  • LIBOR Market Models

  • Approximation Methods

  • Distortion Risk Measures

  • Exponentially Weighted Moving Average (EWMA) Models

  • Generalized Autoregressive Conditional Heteroscedasticity Models (GARCH)

  • Stochastic Risk Measures

  • Market based forecasting

  • Autoregressive Integrated Moving Average (ARIMA)

  • Implied volatility models

  • Exponentially weighted moving average (EWMA)

  • Autoregressive volatility models

  • Autoregressive conditionally heteroscedastic (ARCH) models

  • Generalized ARCH (GARCH) models

  • Fractional integrated GARCH (FIGARCH)

  • Exponential GARCH (EGARCH) model

  • Multivariate GARCH models

  • Asymmetric GARCH models

  • Option implied volatility

  • Optimization

  • MCMC (Monte Carlo Markov Chain) approach

  • Extreme Value

  • Maximum loss

Basel II Market Risk Measurement Approach

  • The Standardized Approach

  • Internal Models Approach

Some Exchange Risks Analytics Methods

 

Quantitative

  • Market based forecasting

  • Autoregressive Integrated Moving Average (ARIMA)

  • Markov switching models

  • Threshold autoregressive (TAR) models

  • Autoregressive volatility (ARV) model

Some Pricing Risks Analytics Methods

 

Semi-Quantitative

  • Stress Testing

    • Scenario Analysis

    • Sensitivity Analysis

  • Probability Distributions

 

Quantitative

  • Increasing limit factor (ILF)

  • Pure premium

  • Target Loss Ratio Approach

  • Capital-Based Cat Pricing

  • Cluster analysis

  • Conjoint analysis

  • Ordinary Least Squares (OLS)

  • Generalized Least Squares (GLS)

  • Generalized Linear Models (GLM)

  • Polynomial Regression

  • Partial Least Squares Regression

  • Multidimensional scaling (MDS)

  • Classification Trees

  • Multivariate Analysis of Variance or Covariance

Some Asset/Liability Matching Risks Analytics Methods

Semi-Quantitative

  • Stress Testing

    • Scenario Analysis

    • Sensitivity Analysis

  • Backtesting

Quantitative

  • Probability distributions

  • Financial Mathematics/ Derivatives Measures. E.g delta, gamma, rho, vega, theta

  • Mean-Variance

  • Gap Analysis

  • Maturity Model

  • Term Structure

  • Duration Analysis

  • Correlations

  • Covariances

  • Copulas

  • Delta-Gamma

  • Efficient Frontier

  • Principal Components Analysis

  • Factor Analysis and Factor Loadings

  • Coherent Risk Measures

  • Distortion Risk Measures

  • Stochastic programming

  • Decision rules

  • Dynamic stochastic control

  • Multiobjective linear programming model

  • Goal Programming

  • Exponentially Weighted Moving Average (EWMA) Models

  • Generalized Autoregressive Conditional Heteroscedasticity Models (GARCH)

  • Stochastic Risk Measures

  • Simulation models

  • Portfolio Management Models

  • Arbitrage models

  • Dynamic generalized networks

  • Optimization

  • Extreme Value

  • Maximum loss