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 on-demand 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
* Please note that the recording links will be delivered to you via a downloadable PDF in your confirmation e-mail. The materials that corresponds with the recording will be automatically delivered upon purchasing via email from the website.
