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.
Getting Started with Model Risk Management
Model Risk Management is much bigger than just validating a model. MRM helps drive model performance, regulatory compliance, stakeholder confidence, and strategic value. As the models that institutions rely on grow in complexity, so too grows their susceptibility to risk. How can you have confidence that your models continually perform at the highest level for your organization?
Getting Started with Model Risk Management
Click to hear more from the DCG model risk management team about the best next steps for organizations that are getting started on a model risk management program, and how to position your program as a strategic advantage.
Video: 2 minutes
“It's important to ask the tougher questions. Those institutions that have a truly effective process will have a competitive advantage.”
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.
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.
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.
Meet Your Model Validation & MRM Team
With over 25 years of experience in balance sheet and model risk management, and 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 a member of the Financial Managers Society’s Board of Directors and California Bankers Association’s Enterprise Risk Management Committee. The son of an educator and member of the faculty of Pacific Coast Banking School, 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.
With over 35 years of experience in strategic risk management, Mike Guglielmo provides technical and strategic consulting to a diverse group of financial institutions. Mike is also a frequent author and top-rated speaker on a variety of balance sheet, model risk management and strategic performance topics. He is the Past Chairman for the Financial Managers Society and is a faculty member for the FMS Institute and ABA’s Advanced Risk Management School.
During his tenure at DCG, Mike has served in various capacities, including director of financial analytics. In addition, he is a technical resource for the ongoing development of many of DCG's quantitative and strategic risk management products and services. Prior to joining DCG, Mike managed the ALCO and strategic planning processes for a regional bank in the northeast. Mike is a graduate of Fairfield University with a degree in economics.
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.
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.