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Modeling Loss Reserves

HardFinance & Accounting00:00
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Your question is Modeling Loss Reserves. Take a moment with it on the right.

Talk me through your thinking if you like. When you're confident, submit your answer and I'll grade it like a real screen (7/10 or better passes).

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Problem

How would you go about modeling loss reserves at Upstart Network, and how would you report it and flow it through the three financial statements? What are the key drivers of loan losses?