How Model Risk Manager can help your business
Perspectives / What is Model Risk Manager?
Model Risk Manager is a cloud-based workflow solution to proactively control and administer an organisation’s entire model estate.
The solution is built with the user at the centre with a highly responsive and intuitive user interface allowing those tasked with model oversight actions to focus on executing those actions successfully rather than fighting a user interface or requiring extensive training.
The Situation
- Models are prevalent across all areas of a Financial Services organisation
- Departments from the front to back use a variety of models for decision making
- These models can cover risk management, pricing, forecasting, fraud detection, etc
- A subset of models require regulatory approval, for example RWA calculations
- Governance of the model estate has typically been retrofitted over the estate
- Consequentially providing assurance and oversight can be a highly manual process
- Tracking issues and risks becomes a manual chasing and compiling exercise
Challenges
- Production usage of a model not approved or out of date
- Lack of clarity of roles and responsibilities between different participants in the processes
- Issues not being closed out in the time required
- Models used inappropriately due to lack of documentation on weaknesses
- Development documentation not attached to the models
- Models becoming stale or out of calibration due to market moves
- Businesses growing beyond the originally intended materiality levels
- Extended time taken for regulatory approval, document collation
- Risks not having appropriate mitigating actions or not followed through
- In-correct input data to models, un-approved curves or rates
Model Risk Manager has been built to manage and automate the governance process with the following unique features.