Model Risk Management

Benefit from a collaborative approach backed by decades of expertise.

An elevated model risk management program and effective challenge process can drive model performance, regulatory compliance, stakeholder confidence, and strategic value. Take advantage of the power of DCG's full team of model developers, MRM practitioners, former regulators, PhDs, and documentation experts who singularly focus on equipping institutions to manage model risk and make better strategic decisions.

​“It's important to ask the tougher questions. Those institutions that have a truly effective process will have a competitive advantage.”

Mike Guglielmo

Managing Director

Implementation

Building a sustainable and right-sized model risk management framework is imperative to achieve regulatory compliance and realize strategic value from your models. For institutions with nascent or underdeveloped model risk management processes, DCG's MRM experts provide templates, materials, and education to set up a fully functional and customizable MRM process.


Specialized Consulting

When specific or unique MRM projects arise, you can count on DCG to provide customized support. Our services include model risk ratings, model inventory, policies and procedures, change management, governance and controls, committee structure support, model development standards, model implementation standards, and an array of model validation services.

Performance Reviews & Gap Analysis

As an institution evolves and grows, so too must its MRM program. Performance reviews start with a rigorous assessment of current MRM processes to assesses compliance with relevant regulatory guidance. Using an evidence-based approach, we identify any existing process gaps and to help create a roadmap forward.

Outsourcing Model Risk Managers

When in-house resources or expertise are not sufficient, look to the DCG team of experienced model developers, MRM managers/practitioners, former regulators, PhDs, and documentation experts to be the partner you can rely on to partially or fully manage your MRM process. As a trusted outsourced model risk manager, we simultaneously perform the MRM function and identify ways to strengthen existing processes.

Education & Training

Mastery of MRM is an ongoing journey. The industry is continuously changing as new practices emerge. DCG continues to be a go-to educational provider at national and regional industry events, and can provide customized training for your institution. We design education and training programs to prepare clients to have a fully autonomous MRM process, and customize materials specifically to the unique needs of each institution.

Model Documentation

Documentation is at the heart of effective model risk management. Substantive documentation—and keeping it current—is critical. It not only signifies the care and effort taken to properly manage a model, but also provides the benchmark for comparison and validation/effective challenge. Having written thousands of pages of documentation, DCG has the unparalleled experience and technical expertise to produce regulator-ready documentation for all types of models.

How We Help Clients

Examples of Client Results

  • In fully “outsourced MRM” capacity, helped resource-limited $2B bank build and implement a right-sized model risk management framework.   ​

  • Identified multiple models in a $7B bank’s inventory that were performing the same function in different departments. Streamlined process to utilize one model across departments, saving expense of redundant models.

  • Educated and informed management team of potential exposure due to risk models not performing as intended, resulting in more focused validation and higher confidence in model results.

Connect with our Model Risk Management Team

Featured Insights

Watch DCG's Mike Guglielmo in Model Risk Management Today

Establishing an effective model risk management program will help you stay ahead of regulatory requirements and allow your organization to make better strategic decisions.