This webinar focuses on what you need to do to implement an effective model risk management program for your institution’s credit risk models.
Background
Financial institutions use many types of models to assist with credit decisions. Examples of these models include credit analysis for loan underwriting, loan risk ratings, estimating loan impairments, and determining allowance for loan and lease loss estimates. Since banking is a risk-taking business, model risk can be an unwanted component of risk decision-making. It’s tough enough to make decisions using good data, but when model risk is excessive, bankers can be unwittingly led to make wrong decisions. This could be especially costly if those decisions result in loan defaults. That’s why bankers need to know if their credit risk models are functioning properly. Model risk management is the approach that regulators expect bankers to follow to make sure credit risk models are working as intended.
Agenda
This webinar focuses on what you need to do to implement an effective model risk management program for your institution’s credit risk models. The program components discussed will include:
• Model concepts
• Independent review and validation of models
• Monitoring and backtesting of model results
• Evaluating and validating vendor models
• Governance, policies, and controls
• Regulatory examination preparation
All institutions use models in the credit decision-making process. Do not rely on model output without ensuring that adequate model risk management controls are in place.
Benefits
Participate so you can:
• Prepare for loan examinations
• Ensure that credit risk management efforts are based on accurate information
• Ensure financial statements include accurate information
Who Should Attend
• Chief Lending Officers
• Risk Mangers
• Loan Underwriters
• Secondary Market Officers
• Loan Product/Production Managers
• REO/Workout Specialists
• Appraisers