In a policy environment that is broadly supportive of model use, how can firms build supervisory confidence in their models amid increasing regulatory scrutiny?
How do you promote trust in the use of models to inform business decision-making?
Models serve many important strategic purposes for financial services firms, and in many jurisdictions are relied upon in the regulatory framework.However, they can pose a number of risks for both financial services firms and the regulators monitoring them.Regulators expect strong model risk management, which firms need to demonstrate sustainable viability. Therefore, strong end-to-end model risk management is a pre-requisite to achieve broader strategic goals.