8.2.2 Separation of Different Types of Assumptions

By separating data from modeling assumptions, you can modify assumptions and then run a reprocessing procedure without affecting data. In addition to the instrument data being separate from assumptions, each type of assumption is defined independently from other assumption types.

Although they act dynamically during a processing run, assumptions about new business characteristics, new business volume, new business pricing, new business maturity mixes, prepayments, and discounting methodology are defined independently. This facilitates the isolation of the impact of a change on one assumption. You simply modify the selected assumption and reprocess in a separate processing run.