Model Risk Oversight

The role of model risk oversight is to provide a decision making framework that is logical, robust and repeatable to govern the development and review of an organisation’s risk models. In this way, an organisation will have a structured approach to conducting both its business as usual activities and its business change activities regarding models.

Example Model Risk Oversight Map

Approach

Governor enables you to draw maps of the model risk regulatory and policy obligations and to define the models, reviews and actions required to ensure validation is complete. You can also draw the interdependencies between models and define all the underlying assumptions. This allows for common assumptions to be updated once and then disseminated to relevant users in order to ensure consistency. All of the supporting documentation (definition and design docs, scenario results, sensitivities and manuals) can be retained.

Key functions include:

  • Automatically pull metric data from other systems
  • Workflow enable the metric collection and status assessment process
  • Include commentary, discussions and attachments
  • Link items to any other items
  • Set appetite thresholds for all risks
  • Tag risks with items such as: products, models, risk types, committees, etc.
  • Filter views by tags, status, date, etc.
  • Drill through the map to understand cause and effect
  • See how the model risk map looked at any date in the past
  • Set security so that people can only view/edit relevant parts of a map
  • Works on desktops and mobile devices