Model Risk Management Best Practices

Gain a comprehensive understanding of developing a sound financial model risk management program.

Course Overview
Learn how to develop, analyze, review, and maintain a sound financial model risk management program. During this two-day course, you will explore the essential components of a model risk management program; why these components are necessary; regulatory expectations related to model risk management and governance; and the keys to successful program implementation.

Who will benefit?
This course is particularly useful for those new to the model risk management field in the risk management and audit functions and to those that oversee components of financial model risk management as part of their responsibilities. This course will also benefit:

• Auditors.
• Chief auditor/head of audit.
• Chief risk officer.
• Head of market/credit/operational risk management.
• Head of model validation/model risk.
• Head of risk appetite.
• Head of risk management.
• Head of stress testing.
• Model review practitioners.
• Model validation practitioners.
• Risk managers, analysts, and controllers.

You will:

• Gain an understanding of the model risk management lifecycle.
• Identify the roles and responsibilities of the three lines of defense.
• Learn about the model identification process, model inventory, inventory taxonomy, and model risk rating.
• Find out the components of a good model validation program.
• Know the importance of templates and playbooks.
• Determine the effective use of findings and recommendations.
• Learn how to design a model risk appetite.
• Become versed in the components of an effective model monitoring program.
• Understand regulatory expectations.