Model Risk Management (MRM)

High Performance Idea Exchange for US based Regional/Community Banks

Yields is excited to invite you to an exclusive enhanced Model Risk Management online workshop on December 5^th, hosting Smarter Risk Management Founder and President John Hurlock. 

What are you doing about MRM?

A recent survey by Smarter Risk Management LLC (SRM) shows that, at least at the regional and community level, banks are working through the concept and requirements for MRM. Some have established programs that are comprehensive while others are just beginning to address this important issue. The one thing that has been consistent is how differently everyone interprets MRM. As a result, the approach is often reactive and rushed, resulting in a complicated and costly process.

Recognizing this, Yields and Smarter Risk Management see the need to bring together a small group of financial institutions to share the actions and ideas they have in conjunction with the experience of Yields and Smarter Risk Management. This is meant to be an interactive exchange.

After signing up for this workshop, you will be invited to respond to a pre-exchange questionnaire and share your overall approach to MRM and the issues you are facing. Your responses will be shared anonymously with other attendees to create a ranking of the topics to be discussed. Areas that will be discussed include:

• Your approach to MRM (centralized, decentralized, model ownership, etc.)
• Does your MRM framework include governance for AI and GenAI applications?
• How did you create your model inventory? How do you separate models from tools? What solution do you use? 
• Do you validate the models internally or use independent third parties? If third parties, how many different firms do you use? How do you risk rank the models?
• What does your inventory look like? How many internally built models, vendor models, AI use cases?
• What type of statistical tools are used to support the strength of your models?
• How much is model validation costing you right now? How will this change going forward?
• How do you get management and the Board to recognize the importance of MRM?
• How have you addressed the Artificial Intelligence (AI) components your vendors are adding into your models?

About Smarter Risk Management

Smarter Risk Management is a U.S. based advisory firm that focuses on common sense solutions to the risk management issued faced by financial institutions. SRM’s team of seasoned consultants have both experience as bankers and consultants, meaning they understand the issues, challenges and opportunities faced by the regional and community banking market. With respect to Model Risk Management, SRM’s consultants have been involved in this arena for over 25 years and understand the current issues as well as the evolution of MRM.

Attendance is open to all, but advance registration below is required. Don’t miss out!

When: Online workshop 5th December 2024 – 12pm EST (6pm CET)