Model Risk Management

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.

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.

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.

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.