Effective Strategies for Model Validation and Control

Why Should You Attend:

Financial institutions rely on models and quantitative analysis to perform key activities such as investment valuations, risk management, and liquidity and capital management. A sound management of the risks inherent in the use of financial models is imperative to reduce the risk of reliance on flawed or misapplied models. SR Letter 11-7, issued jointly by the Federal Reserve and OCC, provides comprehensive guidance for banks on effective model risk management and has become the gold standard for model risk management, with its principles being adopted by virtually all U.S. financial institutions.

Webinar participants will understand all requirements of the regulation and learn how to implement effective policies and procedures to establish a sound model risk control framework, including independent model validation and verification. Participants will also understand the importance of developing a model inventory, assessing the risk inherent in each model, and developing controls that are commensurate with the risk and reduce it to an acceptable level.

Areas Covered in the Webinar:

• Background and Model Risk
• Purpose and Scope of the Guidance
• Model Risk Management
• Model Development, Implementation and Use
• Model Validation and Verification
• Governance, Policies and Controls
• Three Lines of Defense
• Roles and Responsibilities
• IT and Spreadsheet Controls
• Effective Challenge

Who Will Benefit:

• Risk Officers
• Compliance Officers
• Internal and External Auditors
• Financial Controllers
• Operations Managers
• Treasurers
• Board Members
• Business Managers
• Investment Managers
• Asset Managers
• Broker/Dealers
• COO (Chief Operating Officers)
• CRO (Chief Risk Officers)
• CIO (Chief Information Officers)
• CPAs (Certified Public Accountants)
• CBAs (Chartered Bank Auditors)
• CIAs (Certified Internal Auditors)
• CFEs (Certified Fraud Examiners)

Mario Mosse
President, MMosse Consulting LLC

Mario Mosse has over 40 years of experience in enterprise risk management, internal audit and regulatory compliance at financial services companies. He is the president of MMosse Consulting, LLC, where he provides risk management advice and training to the financial services industry. Previously, he was the head of Operational Risk Management at Prudential Financial, Inc. and with The Chase Manhattan Bank, where he held several senior positions in risk management and internal audit.

Topic Background:

In April 2011, federal bank regulators published SR Letter 11-7, entitled “Supervisory Guidance on Model Risk Management.” SR Letter 11-7 outlines the regulatory expectations with respect to the risk management processes and internal controls that banks must implement to ensure that models are developed, implemented and used in a well-controlled manner. The guidance also describes the roles of the various areas involved in the management and oversight of models, including the need for independent model validation and effective challenge.

Follow us :