Model Risk Management

DCG is the premier resource for institutions (both large and small) looking to develop, assess or strengthen their model risk management (MRM) programs.

DCG’s seasoned team of MRM professionals, which includes former examiners, former MRM managers, former auditors and risk experts, collectively bring decades of real-world experience to each MRM-related engagement. Whether you are a community-sized institution looking to establish a sensible and appropriately structured model risk management program for the first time, a larger institution looking to optimize your existing MRM framework (or prepare for an upcoming regulatory exam) or internal audit wanting expert assistance with performing your independent assessment of your MRM framework, our team has the horizontal knowledge, expertise and experience to help you achieve your specific goals.

Read DCG Managing Director Michael R. Guglielmo’s article entitled What is Effective Challenge?

What We Do

Below summarizes the most common ways DCG assists financial institutions with their model risk management efforts and initiatives:

  • MRM Consulting & Advisory – For institutions looking to develop or expand your model risk management framework, DCG can provide expert guidance with building, improving or implementing their MRM program. In addition, DCG can assist institutions needing help with remediation coming out of third line of defense audits or targeted regulatory exams.
  • MRM Gap Analyses – For organizations new to model risk management, DCG can provide a gap assessment and roadmap for implementing an effective MRM framework. This service can be expanded to include development of policy and governance framework, model inventory, risk rating process, documentation, validation standards and training for executives, model owners, model developers, validators and audit.
  • MRM Performance Reviews – For institutions with established programs that are looking for an independent assessment as part of their “third line of defense” audit function (or in advance of a targeted exam), DCG can provide a substantive MRM Performance Review. This service is also beneficial for organizations looking to improve the performance, effectiveness and cost of their MRM program.
  • MRM Education and Training – DCG is the premier provider of industry model risk management education for institutions (both large and small). In addition to facilitating numerous MRM seminars and training workshops throughout the country, DCG also conducts in-house training programs that can be tailored to meet your specific objectives. This can include education for executives, directors, model owners, developers, MRM practitioners and auditors. DCG also hosts an annual Balance Sheet and Model Risk Management conference each year in June.
  • Outsourced and Co-Sourced Model Validation Partnership – DCG can serve as an independent validation partner for institutions that rely upon external resources for some or all of their model validations. In addition, DCG’s quantitative and qualitative validation experts can provide staff augmentation when the need arises. We also provide other specialized services, such as model documentation and conceptual reviews.