Accounting, consulting and technology firm Crowe Horwath introduced a Crowe Model Risk Manager solution that facilitates financial institutions' model risk management process while providing insight into the complex inter-relationship of models across the enterprise, in a single view.

The solution was built to meet the requirements in the latest supervisory guidance while enabling finance companies to: identify and inventory models and understand model risk; develop, monitor and validate models; and deploy effective model governance and control.

“Financial institutions can have hundreds, if not thousands, of models, making model risk management incredibly complex and challenging,” stated Brian Kloostra, a principal in the Crowe Risk Consulting group. “We combined our technology background with our extensive experience working with financial institutions to develop a solution that supports sound practices and provides the automation required for effective model governance. This gives financial institutions a consistent way to identity, manage and mitigate model risk while meeting regulatory and business requirements.”

Crowe Model Risk Manager components include:

  • Support for complex hierarchies and linkages of models and model elements
  • Maintaining and logging changes made to model design, inputs, outputs, thresholds, parameters and documentation
  • Tracking the history of model deployment at each stage while showing the lineage of implemented models, versions and parameters
  • Tracking of inputs and outputs to trigger alerts regarding anomalies, issues and required actions
  • Collecting results, issues and action items to confirm necessary changes in development and implementation processes
  • Collecting results, recommendations, issues and action items to track changes made to models
  • Predefined reports, dashboards and charts, and the ability to create custom reports

More information on the Crowe Model Risk Manager is available here.

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