Judgment is still required in determining inputs and evaluating outputs, but the modeling process was inconceivable before the development of both modern finance theory and modern information technology. And, in my opinion, by measuring and  BIS Review 85/2001  1  managing risk in a formal and structured way, models, when combined with sound judgment, have, on balance, improved the resultant decisions.
What have been the benefits of the new model-based approach to risk measurement and management? The most important is that better risk measurement and management contribute to more-efficient resource allocation.