Model risk management is increasingly capturing management and regulatory attention as the number of models in use and their complexity amplify and as enterprises seek to optimize their returns on valuable investments in models. Furthermore, key regulatory programs such as IFRS 9, FRTB, IFRS 4, Basel III, etc. continue to prescribe robust governance on models that can materially impact not only individual institutions, but whole industries at large.
While the nature of models and therefore the potential points of failure are virtually endless, the key levers to manage and mitigate model risk are generally more clearly defined. These levers include, for example, the need to have a comprehensive inventory of models and non-models with a clear understanding of their nature, purpose, data requirements and inter-dependencies; the need to align roles and responsibilities to the most appropriate stakeholder groups and equipping those groups to be effective risk managers; and the need to manage model risk across the entire model life-cycle with clear workflows at each step of the process.
This session will cover the following aspects:
- Key current regulatory and business drivers for enhanced model risk management practices
- Guiding principles for a robust enterprise-wide model risk management framework
- A demonstration of the SAS Model Risk Management solution, showcasing its capabilities and value drivers for regulatory compliance and business efficiency