Model Risk Management

The stakes in managing model risk have never been higher. Over the past few years, OCC Circular 2011-12 and SR 11-7 ushered in a new era of model ownership and management, and at the same time regulatory stress testing and CECL have driven a proliferation of models within financial institutions. 

The management of model risk through comprehensive governance, segregation of roles and responsibilities, and formal lifecycle definition and management offer advantages to large complex financial institutions, and indeed the economy as a whole.  But advantages come at the price of increased complexity and increased work. 

Oakleaf Group is expert in the lifecycle ownership of models, and offers clients support in the following model risk management areas:

  • Model Identification, Model Materiality and Prioritization
  • Independent Model Validation
  • Model Documentation and Model Audit Readiness
  • Model Risk Management Governance, Policy and Procedures
  • Board Level Model Risk reporting
  • Model Lifecycle Management
  • Model Risk Management Stakeholder Training and Template Development
  • Model Documentation Standards and Templates
  • Model Coding Standards and Templates
  • Data usage in Model Development, and Model-ready Data Standards