Financial Sector
Model Risk
In a policy environment that is broadly supportive of model use, how can firms build supervisory confidence in their models amid increasing regulatory scrutiny?
Challenges
How do you promote trust in the use of models to inform business decision-making?
Models serve many important strategic purposes for financial services firms, and in many jurisdictions are relied upon in the regulatory framework.
However, they can pose a number of risks for both financial services firms and the regulators monitoring them.
Regulators expect strong model risk management, which firms need to demonstrate sustainable viability. Therefore, strong end-to-end model risk management is a pre-requisite to achieve broader strategic goals.
Our offerings
We can help you across the modelling lifecycle with the following aspects:
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Governance and risk framework
Governance and risk framework review and set-up
Reviewing and setting up effective governance and risk frameworks used to manage risk across the model lifecycle.
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End-to-end MRM
Conceptual design, system, data, processes & policies
Designing and implementing end-to-end model risk management capabilities, from systems to data to processes to policies.
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Technology implementation
Use of advanced analytics and artificial intelligence to enhance MRM framework
Upgrading approaches to adapt existing frameworks for new and advanced analytics such as artificial intelligence.
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Model validation
Confirm alignment of the model and its results with business and regulatory expectations
Conducting effective and efficient independent model validations, with a focus on prioritizing material issues which can be communicated to your Board.
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Managed services
Outsourcing development and validation
Delivering model development and/or validation as a managed service using our global network of specialist modellers to deliver capacity cost effectively.
- Governance and risk framework
- End-to-end MRM
- Technology implementation
- Model validation
- Managed services
Governance and risk framework review and set-up
Reviewing and setting up effective governance and risk frameworks used to manage risk across the model lifecycle.
Conceptual design, system, data, processes & policies
Designing and implementing end-to-end model risk management capabilities, from systems to data to processes to policies.
Use of advanced analytics and artificial intelligence to enhance MRM framework
Upgrading approaches to adapt existing frameworks for new and advanced analytics such as artificial intelligence.
Confirm alignment of the model and its results with business and regulatory expectations
Conducting effective and efficient independent model validations, with a focus on prioritizing material issues which can be communicated to your Board.
Outsourcing development and validation
Delivering model development and/or validation as a managed service using our global network of specialist modellers to deliver capacity cost effectively.
Why Deloitte?
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