What You're Not Asking About Model Validators (But Should Be)

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.

Model validations may not always spark excitement for bankers, but they are a critical safeguard for managing model risk. Too often, institutions anchor their provider decision on cost, and overlook the many dimensions that can materially impact income, reputational risk, and compliance.

During this session, DCG Managing Director Mark Haberland will share key considerations that most institutions overlook when selecting a validator. He will outline a practical framework of questions risk managers should be asking, why those questions matter, and how the answers influence model performance and risk management.

Attendees of this timely session will gain critical perspective on:

How to distinguish between an audit and a true validation – and why it matters
What “effective challenge” really means and its impact on all key risk models
Red flags to watch out for in validation approaches that may seem cost effective but actually introduce hidden risks
A decision framework: the questions every risk manager should ask before selecting the right provider