Model Risk Management

Our Model Risk Management Consulting services are designed to help institutions build, enhance, and maintain robust model risk management frameworks that align with regulatory requirements and industry best practices.

Our services cover all aspects of model risk management, providing tailored solutions to ensure your models are effectively governed, assessed, and managed throughout their lifecycle.

Model Risk Management Program Development and Review:

We work with your team to design and implement a comprehensive Model Risk Management (MRM) program that aligns with regulatory guidelines, industry standards, and your organization’s specific risk appetite. Our approach helps establish clear policies, processes, and governance structures for managing model risks.

Model Risk Management Gap Analysis:

We conduct detailed assessments to identify gaps or weaknesses in your current model risk management practices. By comparing your existing framework against industry standards and regulatory expectations, we provide actionable insights and recommendations to strengthen your model risk management capabilities.

Model Documentation:

We assist in developing or completing model documentation to meet regulatory and policy requirements. Our experts ensure that model documentation is comprehensive, clear, and detailed, supporting transparency and model validation processes.

Model Risk Scoring and Tiering:

We help you assess and categorize the risk of your models by developing a model risk scoring and tiering system. This enables your organization to prioritize resources and oversight based on the inherent risk of each model, ensuring effective risk management across the portfolio.

Model Governance and Oversight Strategy:

We support the establishment of effective governance structures for model oversight, ensuring clear accountability, decision-making processes, and regular reviews of model performance and compliance.

Model Performance Monitoring and Backtesting:

Our team helps set up robust performance monitoring and backtesting processes, enabling you to track model performance in real-world scenarios and make adjustments as needed to mitigate model risk.

• Model Risk Management Program Development and Review:

We work with your team to design and implement a comprehensive Model Risk Management (MRM) program that aligns with regulatory guidelines, industry standards, and your organization’s specific risk appetite. Our approach helps establish clear policies, processes, and governance structures for managing model risks.

• Model Risk Management Gap Analysis:

We conduct detailed assessments to identify gaps or weaknesses in your current model risk management practices. By comparing your existing framework against industry standards and regulatory expectations, we provide actionable insights and recommendations to strengthen your model risk management capabilities.

• Model Documentation:

We assist in developing or completing model documentation to meet regulatory and policy requirements. Our experts ensure that model documentation is comprehensive, clear, and detailed, supporting transparency and model validation processes.

• Model Risk Scoring and Tiering:

We help you assess and categorize the risk of your models by developing a model risk scoring and tiering system. This enables your organization to prioritize resources and oversight based on the inherent risk of each model, ensuring effective risk management across the portfolio.

• Model Governance and Oversight Strategy:

We support the establishment of effective governance structures for model oversight, ensuring clear accountability, decision-making processes, and regular reviews of model performance and compliance.

• Model Performance Monitoring and Backtesting:

Our team helps set up robust performance monitoring and backtesting processes, enabling you to track model performance in real-world scenarios and make adjustments as needed to mitigate model risk.

With our deep expertise in model risk management and hands-on experience across industries, ValuRisk Partners can help your organization create a resilient, compliant, and efficient model risk management framework that enhances confidence in your models and reduces exposure to model-related risks.