The requirement for proper model risk management can be a government mandate or driven by principles-based regulatory guidance, or perhaps there is no external regulatory oversight what so ever. Regardless, model risk management is smart business practice and you should be doing it whether the regulators require it or not. More and more of critical, day to day business decisions are based on models. If there is no governance of those models, you are tolerating an ever-increasing and unnecessary level of inherent risk.

The challenge is that effective model risk management takes resources. It needs people and their time to perform specific tasks and that costs money. In addition, there is a cultural dynamic in that the talented, innovative employee who is driving the use of models is typically resistant to any type of governance and views risk management as a drag on their productivity.

The answer lies in the use of technology to automate many (not all) of the historically manual processes that were the mainstay of older model risk management practice. CIMCON’s technology can enable you to identify and track these risks, as well as implement the appropriate level of controls that align with your risk tolerance. The best practices of model risk management are well established, and CIMCON can’t help you with all of them, but we can automate some helping to simultaneously reduce the cost and the risk.

Create a Account enabling you to manage up to ten models at no change.

Enabling more effective model risk management via:

  • Model inventory management tools that dramatically reduce the time required to maintain an accurate, up-to-date inventory

  • Tracking all critical models, regardless of the technology platform or the regulatory environment

  • Automating the collecting and reporting on self-assessed risk criteria

  • Delivering systematic diagnostic analytics for spreadsheet-based models

  • Providing error checking and remediation for spreadsheet-based models

  • Automating the production of objective evidence for use by Internal Audit and/or regulators