Resource Center Case Studies

Case Studies

Assist Internal Audit Department with Model Risk Management


A regional bank’s internal audit team wanted to assess the overall effectiveness of its model risk management framework. This included analyzing a sample of model validations, the reported findings and remediation activities performed by the internal model validation group.


  • The client’s internal audit team did not have the appropriate credentials and experience on hand to analyze the validations performed by the client’s internal model validation group
  • The client’s model validation group did not have the resources internally to complete the assessment
  • The internal audit team wanted to understand model risk management expectations to assist in identifying whether effective challenge of assumptions and results were being completed, without duplicating validation efforts


  • DHG’s model risk management and validation group provided subject matter leaders to assist the bank’s internal audit department
  • DHG analyzed a sample of model validations to determine whether the model validation framework was in accordance with bank policy and also in compliance with regulatory guidance (Board of Governors of the Federal Reserve System SR 11-7, Supervisory Guidance on Model Risk Management)


  • The client gained necessary insight to determine that the internal model validation group was providing effective challenge during model validations and also increased awareness into potential improvement areas

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Case Studies