Description:
Each prudential regulator has issued guidance on model risk management. Automated monitoring systems that assist in monitoring, identifying, and reporting suspicious activity to compliance with AML requirements meet the definition of a model from this guidance. Financial institutions are expected to have adequate governance over the model’s functions, establish processes to ensure data integrity, and periodically have the model validated to ensure that its design is consistent with the institution’s size, complexity and risk profile so that it identifies suspicious activity. Mismanagement of the model can lead to missed or late SARs, a back log of alerts, or high volumes of useless alerts, which may result in consent orders or even costly lookbacks.
Whether your institution is considering purchasing a third-party model, or you’re using one today, this session will walk you though the regulatory expectations, potential pitfalls in model development, and prepare you for making your next validation successful.
Key takeaways:
- Identify key policies and procedures to establish model governance
- Develop a model risk assessment
- Develop a model gap analysis
- Identify risks in data integration
- Understand the process for calibrating a model
- Identify model parameters that aren’t working effectively
Reminder: The registration fee includes live attendance AND a playback recording of the session, available once the session concludes.
This session is eligible for Continuing Education (CE) credits by the American Bankers Association.
Presenters:
Brian Crow, CAMS
Brian Crow is managing partner and co-president for TCA Compliance and is a nationally recognized BSA/AML expert with a strong bank compliance management background and a welcome ability to provide focused educational support to TCA client banks. Crow most recently was BSA Administrator for a suburban Chicago bank, where his responsibilities included the bank’s annual assessment and audit documentation. Earlier, as Operations Officer at the same bank, Crow monitored AML activity and helped install automated AML software that allowed the bank to transition from paper to electronic CTRs. His activities were responsible for reducing debit card fraud by 95 percent at the bank. Mr. Crow has been, and continues to be, an education consultant for the Glia Group BOL Learning Connect program. It was in this role that Crow was recognized as a Bankers Online Guru in 2011. Like many of us, Mr. Crow began his banking career as a teller, working his way up to branch management responsibilities. He earned a B.A. degree from Concordia University, River Forest Illinois.
June 26, 2025