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

Mark Haberland

Managing Director

Darling Consulting Group

Mark is a Managing Director at Darling Consulting Group. In this role, Mark works directly with financial institutions to strengthen their asset liability management process. He provides support to clients in the areas of liquidity risk management, capital, ALM modeling and reporting and regulatory compliance. He is a top-rated speaker and frequent author and conducts customized workshops and educations sessions for ALCOs and boards.

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