Internal risk model health check - Testing your sustainability | Brochure
The use of internal risk models provides indisputable value for financial institutions and investment funds, since it is the piloting organ of the risk management function.
Models produce figures, which in return influence management decisions: does your model have the potential to protect you from taking inappropriate decisions?
Due to the strategic importance of the outputs that are produced by internal risk models, such models ultimately expose institutions to the so-called risk of model: flawed metrics, inaccurate measures, adverse selection, strategy risk and regulatory risk to name a few. Internal model validation is thus a key step in minimising the odds of such effects, and to be fully confident in the accuracy, suitability and completeness of your internal model.
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