Model risk management

Model risk management

Instill confidence in the integrity and performance of your models

Your financial institution must rely on sophisticated models to monitor and manage business and regulatory risk and perform supervisory mandated stress tests. Inaccurate and poorly performing models can result in financial loss, risk to reputation, and regulatory action.

Crowe professionals combine industry expertise with innovative technology to help financial institutions manage model risk, using a robust framework and model risk management tool.
View model risk management framework for financial institutions

A framework that meets regulators' expectations and fits your risk environment

The Crowe AML Model Risk Management framework includes:
  • Model inventory and risk assessments – Identify and aggregate models by risk levels to obtain a true view of your enterprise model risk and manage those risks accordingly.
  • Model development and implementation – Enlist the strong project management skills and comprehensive knowledge of Crowe modeling specialists to devise models that are appropriate for your organization's size and complexity.
  • Model validation – Verify that models (such as those for value at risk, allowance for loan and lease losses, capital models, and anti-money laundering) perform as expected. The Crowe validation approach is aligned with model risk management guidance from the Office of the Comptroller of the Currency and the Federal Reserve.
  • Model calibration – Calibrate models using quantitative analysis, prescriptive methodologies, and well-defined change control procedures. Provide documentary evidence to regulators and auditors that risks are being monitored at appropriate levels.
  • Model governance – Engage Crowe model risk management practices and internal audit expertise to execute a tailored, risk-based internal audit program, identify control gaps, and provide recommendations.
  • Model foundation – Use the Crowe Model Risk Manager tool to execute and maintain effective, consistent model risk management practices with enabling and proprietary technology.
Model risk manager

Crowe Model Risk Manager

Enhance your model risk management program through technology with this highly configurable, scalable solution that supports effective governance and best practices.

Related services

Allowance for loan and lease losses
Crowe Credit360 for Stress Testing™
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Allowance for loan and lease losses
Crowe Credit360 for Stress Testing™
Anti-money laundering

Contact us

Learn more about how Crowe can help your financial institution evaluate model risk and design and implement solid, effective models and best practices. Contact us today.
John Epperson - Large
John Epperson
Principal
wright-ralph-225
Ralph D. Wright
Principal