Model Risk Management for First-Timers: A Compliance Primer

Mark Haberland

Managing Director

Darling Consulting Group

With nearly 30 years of experience in balance sheet and model risk management, hands-on experience in audit and leading the operations of DCG’s Financial Analytics Department, Mark has unique expertise for optimizing and “right-sizing” risk management in the community, mid-size, and large banking space.

In his current role, Mark facilitates educational programs and collaborative workshops and is a trusted resource for financial institutions, industry, and state trade associations, as well as regulatory agencies on a variety of balance sheet and model risk management/validation topics, including IRR, Liquidity, CECL, BSA/AML, MRM/ERM, and ALCO.

Mark is a frequent author and top-rated speaker on a vast array of risk management topics and is Past-Chairman of the Financial Managers Society’s Board of Directors. The son of an educator and member of the faculties of Pacific Coast Banking School and Southwest Graduate School of Banking, Mark’s passion for teaching drives his desire to work with bankers to strive for excellence within their organizations.

Mark lives on the North Shore of Boston with his wife, two children, and two dogs. He is a graduate of St. Michael’s College in Vermont with a degree in accounting.

As community and mid-sized banks face increased scrutiny over their model risk governance frameworks, many compliance and risk professionals are finding themselves responsible for model risk management (MRM) for the first time. This session offers a foundational overview of MRM, explaining key concepts, roles, regulatory expectations, and the lifecycle of a model - from implementation through validation and retirement. Attendees will gain practical insight into how compliance integrates into MRM and how to get started even with limited resources.

Key Takeaways:

Understand what qualifies as a “model” under SR 11-7 and related guidance.
Learn the components of an effective model governance framework.
Identify the roles and responsibilities of compliance, risk, audit, and business units.
Discover how to create a model inventory and categorize models by risk.
Explore compliance checkpoints during the model lifecycle.