Model Risk Management

Oakleaf provides a broad range of services in support of model risk management.  This service area supports modeling or analytic teams or organizations or functions, generally inside financial institutions, which are responsible for building and managing financial models, or for combining financial models with data and assumptions to create “runs”, or for being a second-line internal audit function.

The modeling & analytic organizations might be in finance (e.g. FP&A, loss forecasting, loss allowance), risk (stress testing), or the business (e.g. credit pricing, capital markets portfolio risk management). What they have in common is that they build or buy financial models, then run those models for financial reporting, risk management, and/or decision support business capabilities.  Their pain point might be inefficiencies (to which we offer process improvement consulting), building new capabilities (to which we offer model development and also model-based application development capabilities), leveraging existing infrastructure investments into new business functions (to which we offer integrated execution platform consulting).  They may be building stress testing capabilities (to which we offer expertise in design of enterprise stress test processes). 

Oakleaf services in this area include:

  • Model Validation
  • Model Documentation
  • Model Development
  • Integrated Model Execution Frameworks
  • Model-based application development