Optimizing the Engine Under the Hood.
Your internal models are your competitive advantage. But are they mathematically optimal? Standard algorithms—from Random Forests to Multi-Linear Regressions—often rely on default assumptions and standard loss functions that may not fit the chaotic reality of your business data. At Cristo Labs, we act as your External Quantitative Audit & Research Unit. We don't just accept your models; we stress-test their mathematical foundations, build superior "Challenger" architectures, and apply novel principles from statistical physics to solve your oldest business problems.
Our Philosophy: White-Box Rigor
We believe that "black box" AI is a liability. True optimization requires understanding the mathematical mechanics under the hood. Our Research Cadre approaches your algorithms with a physicist’s lens:
- From Default to Bespoke: We replace standard library defaults with custom loss functions tailored to your specific business constraints.
- From Correlation to Causality: We look for the physical drivers of variance, not just statistical associations.
- From Linear to Thermodynamic: We model complex business systems not as straight lines, but as dynamic energy fields subject to entropy and phase transitions.
Key Capabilities
1. Algorithmic Audit & Refinement For Model Risk Officers & Compliance Leaders We deconstruct your existing production algorithms to identify mathematical inefficiencies and structural blind spots. Standard libraries are powerful, but they are generalized. We specialize them for your data.
- Splitting Metric Optimization: If your decision trees rely on standard Gini coefficients, we test alternative entropy-based splitting metrics to capture subtle signals earlier in the tree.
- Regression Diagnostics: If your pricing or forecasting models assume homoscedasticity (constant variance), we introduce robust error estimators and weighted least squares to correct for real-world volatility.
- Hyperparameter Surface Analysis: We don't just "grid search"; we map the topology of your model's performance to ensure you aren't stuck in a local minimum.
2. Champion/Challenger Benchmarking For Business & Strategy Leaders You have a "Champion" model (e.g., for Loan Loss Provisions, Churn Prediction, or Inventory Forecasting). How do you know it’s the best? We act as the independent "Challenger."
- The Challenge: Using your exact input datasets, our Ph.D. cadre builds a competing model using different architectures (e.g., comparing your Gradient Boosting Machine against our Physics-Informed Neural Network).
- The Showdown: We pit our model against yours to benchmark performance, expose hidden biases in your Champion, and provide a defensible, quantitative evidence base for your Model Risk Management (MRM) committees.
3. Alternative Physics Modeling For Supply Chain & Operations Leaders When standard econometric or statistical approaches hit a ceiling, we apply a different set of laws. We re-frame your existing business challenges as thermodynamic systems.
- Supply Chain Thermodynamics: Modeling inventory flows as fluid dynamics to predict bottlenecks before they form.
- Customer Phase Transitions: Modeling churn not as a linear probability, but as a "phase transition" (like water turning to ice), allowing us to detect the "Critical Slowing Down" signals that precede a mass customer exodus.
- Liquidity Entropy: Quantifying the disorder in your cash flow cycles to predict liquidity crunches that standard variance models miss.
Engagement Models
We do not sell off-the-shelf software. We sell Mathematical Certainty.
- Bespoke Audit: A one-time, deep-dive review of a specific critical model (e.g., "Audit our Q3 Demand Forecast Model").
- The "Challenger" Project: A 8-10 week engagement to build a competing model to benchmark against your internal standard.
- Dedicated Research Cell: We deploy a Ph.D. Researcher to work alongside your data science team for a set period to inject advanced mathematical capabilities into your workflow.