Model Validation and Governance Survey

In Spring 2009, the Market Risk Council of The Risk Management Association conducted a survey on best practices within the area of model validation governance practices within financial institutions. This Web-based survey—with over 40 institutions from Canada, Europe, Asia, the United States, and Australia—is part of an ongoing exchange of information reflecting RMA’s continuing efforts to help members better understand the nature of the types of model validation standards in use.


The results of the survey provide valuable insight and benchmarking data regarding common industry practices and the degree to which certain validation techniques have achieved general acceptance and standardization.

This 50-question survey focuses on practices for model validation and governance. The survey also includes sections for comments where participants describe the impact the recent credit crisis and market disruptions have had on their approach to model validation and governance practices.


Types of information to be included:

  • Organizational structure.
  • General policy and governance of model validation.
  • Independent validation activities and practices.
  • Scope of validation.
  • Vendor/third party models.
  • Stress testing, sensitivity, and scenario analysis.


The final report was issued in August 2009, to survey participants only. This comprehensive report contains detailed findings in its 140+ pages. It clearly describes the most prevalent methods, tools, and decision processes used to determine leading practices. You may view a synopsis of the Model Validation and Governance summary (PDF) by clicking on the aforementioned link. To purchase the complete survey, please contact Rosemarie Casler, 215-446-4081 or The cost of the report is $695 for an RMA member and $995 for a non-member.

Institutions interested in participating in future market risk studies should contact Fran Garritt, Director, Market Risk and Securities Lending, 215-446-4122 or at


AIB Capital Markets
ANZ Bank
Banco Itau
Bank of Montreal
Bank of Nova Scotia
Bank of Tokyo
BOK Financial
Citizens Financial Group, Inc.
Comerica Bank
Commerzbank AG
Commonwealth Bank of Australia
Credit Suisse
DBS Bank
Fannie Mae
Federal Home Loan Bank of Boston
Fifth Third Bank
First Horizon National Corporation
Firstrand Banking Group
Guaranty Bank
Kasikornbank Public Company Limited
Laurentian Bank of Canada
Lloyds Banking Group
Marshall & Ilsley Corporation
Morgan Stanley & Co.
National Bank of Canada
Northern Trust
Regions Financial Corporation
Riyad BANK
Royal Bank of Canada
Societe Generale
Sovereign Bank
Standard Chartered Bank
State Street Corporaton
SunTrust Banks, Inc.
TD Bank Financial Group
The Bank of New York Mellon
Union Bank NA
US Bank