Description
Join me on October 22nd for a brand new webinar on designed to show you how to review the applicable regulatory guidance on model risk, discuss the suggested framework for validating models, and list specific steps that will allow your bank to handle model validation internally, without the added expense of third party reviews.
Background
Many of the largest issues in the financial crisis involved modeling errors of some kind, either as a direct cause or as a contributing factor in the scale of the losses. In order to mitigate some of these issues, financial regulators have a renewed focus on model integrity, and specifically on the model validation process. Even with this renewed focus, “The London Whale” caused a multibillion dollar loss at JP Morgan, largely due to an error in an internal model.
Finding the resources to independently validate models can be difficult, especially for smaller financial institutions. However, using the regulatory guidance, it is possible to design and implement a relatively simple and effective process for validating an interest rate risk model. With such a process in place, the models become more accurate and reliable, and perhaps most important, they are trusted by management and regulators.
Benefits
In this environment, the “S” portion of your CAMELS rating depends as much on your modeling process as on the actual level of interest rate risk on your balance sheet. Join me on October 22nd for a brand new webinar on designed to show you how to:
• Review the applicable regulatory guidance on model risk
• Discuss the suggested framework for validating models
• List specific steps that will allow your bank to handle model validation internally, without the added expense of third party reviews
Who Should Attend
• Chief Risk Officers
• Liquidity Risk Specialists
• Finance Officers
• Asset Liability Management staff
• ALCO members
• Internal Auditors