Model Risk Management

This course will provide course participants with an overview of model risk management with a focus on the specific needs of banking institutions. The evolving complexity of products and activities engaged in by banks has greatly increased the reliance banks place on models, with uses ranging from risk measurement to valuation. This course will review the current regulatory requirements and best practices for managing model risk and will describe the critical success factors associated with implementing an appropriate model risk governance framework.

Course Objectives

By the end of the course, the participants will be able to:

• Discuss the current regulatory guidance for model risk management at banks
• Analyze the key factors involved in developing, implementing, and using models
• Explain the role of model validation and the independence required for this process to be effective
• Describe at a high level the necessary components of a model risk governance framework

Suggested Prerequisites: None

Program Level: Foundational

Advance Preparation: None

Computers and Financial Calculators: N/A

Recommended CPE Credits: 7