This training program will detail why SR Letter 11-7 has become the gold standard for model risk management, with its principle being adopted not only by banks but also virtually all U.S. financial institutions.
Financial institutions rely on models and quantitative analysis to perform key activities such as investment valuations, risk management and liquidity and capital management. A sound management of the risks inherent in the use of mathematical models is imperative to reduce the risk of reliance on flawed or misapplied models. SR Letter 11-7, issued jointly by the Federal Reserve and OCC, provides comprehensive guidance for banks on effective model risk management.
This webinar will offer attendees an understanding of the background behind SR Letter 11-7. It will further discuss the purpose and scope behind the supervisory guidance on model risk management.
- Background and objective of SDR 11-7
- Summary review of types of risk management models
- Defining model risk
- Purpose and scope of the guidance
- Model Risk Management
- Model Validation
- Management oversight
- Policies and Control
- Roles and Responsibilities
- Model Developers
- Model Evaluators
- Business Managers Utilizing Models
- Financial Managers Utilizing Models
- Risk Managers
- Board of Director Members
- Executive and Senior Managers
- Risk Educators