Resource Center Case Studies

Case Studies

Assist Internal Audit Department with Model Risk Management

FISG-Thumb.jpg

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.

Challenges

  • 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

Solutions

  • 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)

Impact

  • 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



Industry Issues



Services In Focus
Alerts, News
& Publications


2018 Year End Tax Planning Letter
It is hard to believe that the year is almost over, and the holiday season is...
Read More

Targeted Improvements to Related Party Guidance for ...

On October 31, 2018, the Financial Accounting Standards Board (“FASB”)...
Read More

Revenue Recognition: A Private Company Disclosure Guide
The Financial Accounting Standards Board issued Accounting Standards...
Read More

Events



Blog

Have You Heard of...
WCSC-TV’s Live 5
Read More

Warranty Woes in ...

Warranties seem
Read More

Case Studies