Model Risk Management Solutions and Services

Boards and management rely significantly on models and model output to make strategic and operational decisions. Therefore, it is extremely important to have the right model risk management framework in place to ensure the accuracy, robustness, and reliability of models and model outputs.

Developing a robust Model Risk Management (MRM) program will enable and empower your institution to manage model risk across the lifecycle while also facilitating the “effective challenge” oversight function prescribed by the regulators. Our approach is comprehensive and customized to meet your specific goals and requirements.

Model Governance and Organization

• Model risk management framework review and enhancement
• MRM reporting and analytics
• MRM/Model Owner enablement and training
• Internal Audit/MRM oversight
• MRM Policies and Procedures
• Third-Party Models

Model Lifecycle  Management

• Model Evaluation
• Model Risk Tiering
• Model Inventory 
• Model Monitoring
• Model Change Management
• Issues Review and Remediation

Model Risk Control Framework

• Model change controls
• Data management controls
• Documentation controls
• Model overlays and override analysis
• Manual process reviews
• End User Computing controls

Model Risk Assessment and Risk Quantification

• Model risk ratings
• Model dependencies, model mapping
• Model risk acceptance
• Model risk indicators
• Severity ratings
• Dashboards

Model Benchmarking and Performance Measurement

• Champion-Challenger Model benchmarking frameworks
• Model replication
• Model verification
• Independent testing and performance diagnostics
• Peer comparisons
• Reverse stress testing and sensitivity analysis

VBC Advisors delivers engaging, client-
centered expertise empowering your
institution with the assurance necessary to
satisfy regulatory expectations and serve
strategic mandates. We share our
knowledge and experience to ensure that
your MRM program strikes the appropriate
balance between business needs and
supervisory requirements.