The experience of a financial institution already subject to MRM regulation has shown that compliance creates a significant burden and additional costs. Creation of a new group Model Risk Management (MRM) policy together with a central MRM team affects many staff including model developers, validators, owners, users and senior management. Done badly, MRM compliance can add millions in terms of direct and indirect costs. Model Risk Management (MRM ) from SAS delivers Low cost, compliant MRM processes and Improvements in the efficiency of the underlying model development process.
Comprehensive risk data management
Includes integrated business glossary, SAS and third-party metadata management, and lineage visualisation
- Ensure that the data used to develop, validate and monitor your models is complete, accurate and timely, appropriately aggregated and effectively governed.
- Facilitate fact-based conversations among internal and external model quality stakeholders
Centralised model inventory
Provides complete document and workflow management, regardless of model type, source or development technology.
- Govern any type of model developed in any technology
- Confirm and attest the accuracy of a model inventory
- Securely store model attributes ad assumptions across model types, sources (inhouse and 3rd party) and technologies
- Automate model documentation in your own templates, track versions and securely manage
- Expedite the management and deployment of best-practice models into production
- Enable auditability and compliance to meet global regulatory requirements
Provides data exploration capabilities that let you design and distribute meaningful data visualisation reports.
- Aggregate model risk across an organisation
- Easily disseminate model performance and validation reports
- Provide executive insight in an accurate view of model risk concentrations
- Understand the impacts of altering/decommissioning models
- Identify model risk from the bottom up
- Use SAS Add-in for Microsoft Office to easily export data into Excel, PowerPoint and Word
Model review & validation
Governance tools enforce appropriate signoffs, legal reviews and testing on a consolidated platform that records the entire conversation.
- Assess whether a candidate meets your qualifying model criteria
- Develop working documents for your model validation team
- Gain transparency and apply model review and validation procedures that are consistent with your policies and standards
- Systematically track model performance measures, thresholds and alerts
Model usage tracking & change management capabilities
Adapt and implement policies to accommodate changing regulatory guidance on model development, validation, implementation, monitoring and change management.
- Integrate any model monitoring metric, at any level, from any source, directly into your model risk management framework
- Easily monitor models with a library of detailed and interactive dashboards
- Continuously monitor models, automatically generate findings and maintain a record of changes
- Meet internal model validation, governance and supervision standards
- Track official regulatory reviews, including internal and external tasks, documentation and official sign-offs
Get a complete model risk management solution that includes a centralised model inventory and model assessment capabilities.
Centralise model information management.
Establish a centralised model inventory that supports your internal policies and procedures across all business units. The solution's robust infrastructure includes permissions, version control and data mining capabilities. And you can import attributes and metadata – e.g., model limitation scoring, validation results and criticality ratings – from any type of model developed in any technology.
Document and track models throughout the model life cycle.
Effectively track model issues, concerns, challenges and remediation with a rigorous model review and validation process that satisfies regulatory principles and expectations. A single source of model documentation consistently records the review and validation process, which can be can be examined at various levels, including model lineage, version, business line, model owner and more.
Gain greater insight into model risk concentrations.
Analyse thousands of data points – using both quantitative and qualitative data – to gain greater insight into your organisation’s model risk concentrations. Interactive visualisations tell your model risk story clearly and accurately to broaden institutional awareness and facilitate appropriate board-level oversight. And users can easily drill down through reports to learn more.
Keep pace with changing risk policies and regulations.
Quickly tune your model review and validation practices to stay on top of ever-changing risk policies and regulatory requirements. Governance tools help enforce appropriate signoffs, legal reviews and testing on a consolidated platform.
Get clear, enterprise-level oversight throughout the model life cycle. Keep executive management and regulators up to date on model status across all risk categories. And gain valuable insight for making precise risk-reward decisions.
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