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Capitalised Terms in CUI-CPP V2.0 have the meaning defined in Table 1.

A dash “-” preceding a Term in Table 1 indicates the following readings according to the font:

  1. Normal font: the Term in the table without a dash and preceding the one with a dash should be read after that Term. For example, “Risk” and “- Assessment” will yield “Risk Assessment”.
  2. Italic font: the Term in the table without a dash and preceding the one with a dash should be read before that Term. For example, “Descriptor” and “- Financial” will yield “Financial Descriptors.”

All MPAI-specified Terms are defined online.

Table 1 – MPAI-CUI terms

Term Definition
Business Discontinuity An interruption of the operations of a company for a period of time less than 2% of the Prediction Horizon.
Company Default The status of a company who has failed to make full and timely payments on its obligations.
Descriptors
–       Financial Data produced based on a set of accounting principles driving maintenance and reporting of company accounts so that financial statem­ents can be consistent, transparent, and comparable across companies.
–       Governance A set of indices/parameters that are used to assess the adequacy of the organisational model.
–       Organisation A set of indices/parameters that include an Company Assessment and a vector of numbers representing the importance of a particular Governance Descriptor on the Company Assessment.
–       Primary Default The following:
1. The Primary Default Probability.
2. Two vectors of numbers representing the importance of a particular Governance Descriptor (1st vector) and a particular Financial Descriptors on the Primary Default Probability.
–       Primary Discontinuity The following:
1. A vector of Primary Discontinuity Probabilities for each Machine Learning Model processing a Risk.
2. A matrix of numbers representing the importance of Governance Descriptors (1st vector) and Financial Descriptors (2nd column) on the Primary Default Probability.
Prediction Horizon Number of months for which prediction is sought.
Secondary Risk Matrix A table composed of two rows for the risks and four columns for the charac­teristics. Table 1 gives the four characteristics for the Vertical Risks considered.
Risk
–       Assesssment Attributes indicating the internal company assessment to identify and measure potential or existing Vertical Risks, and their impact on Business Continuity.
–       Cyber Risk of financial loss, disruption, or damage, caused by the failure of the digital technologies due to unauthorised access, use, disclosure, disruption, modification, or destruction of the systems.
–       Matrix Table composed of two rows for the risks (cyber and seismic) and four columns for the characteristics (occurrence, business impact, gravity and risk retention) as evaluated by the company.
–       Primary Risk for which a trained AI model is available for processing.
–       Secondary Risk for which a trained AI model is not available and its impact is estimated based on Prediction Result Perturbation processing.
–       Seismic Risk The measure of the possible losses associated with the behavior of a building or structure in likely earthquakes.
–       Vertical A risk that must be understood in a specific context/domain of the business.
Statements
– Financial  Statements by the Company being assessed about Company financial data.
– Governance Statements by the Company being assessed about Company governance.
– Primary Risk Statements by the Company being assessed about the Risks for which compliant Machine Learning Modules are available in the CUI-CAP.
– Secondary Risk Statements by the Company being assessed about the Company-perceived first level Risks of the Risk Taxonomy.

 

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