model risk management

 

rt360 Model Risk Management

The ‘rt360-MRM’ product helps to manage the life cycle of models used in a bank.

Meet The Experts

The ‘rt360-MRM’ product helps to manage the life cycle of models used in a bank, to mitigate the risk that can arise from the usage of models and ensure robust governance and compliance with various regulations and policies such as

  • Federal Reserve’s Regulations Supervision and Regulation Letters 14-3 for Bank Holding Companies (BHCs) and their subsidiaries
  • Financial Accounting Standards Board (FASB) accounting standard (ACU 2016-13) ‘Financial Instruments
  • Comprehensive Capital Analysis and Review (CCAR) United States regulatory framework
  • The Fundamental Review of the Trading Book (FRTB)
  • Central Bank of United Arab Emirates (CBUAE) (IFRS 9)
  • Basel III International banking regulations
  • SR 11-7 Supervisory Guidance on Model Risk Management
  • Office of the Comptroller of the Currency ((OCC) 2011-12) guidelines on model development and validation process, along with the associated governance, policies, and controls
  • Targeted Review of Internal Models (TRIM)
  • International Financial Reporting Standard 9 (IFRS 9)

Features

 

MODEL CONFIGURATION allows to configure, customize, manage changes, and track easily without much intervention from bank IT staff

 

DATA OPERATIONS from Data Ingestion, Transformation, Loading and Data Quality

 

MODEL ESTIMATIONS of different credit risk model parameters such as PD, LGD, EAD and ECL

 

MODEL VALIDATION includes Quantitative Validation (Discriminatory Power Tests, Calibration, Benchmarking and Stability) and Qualitative Validation

 

MODEL MANAGEMENT covering model inventory, model issues and management of model under development

 

MODEL WORKFLOW / CASE MANAGEMENT functionality for transparency and ease of audit

 

STRESS TESTING AND SCENARIO ANALYSIS for various parameter level and macroeconomics scenarios

 

REPORTING functionality to view and download reports in predefined formats

Benefits

 

Maintain single source of truth for all aspects of model risk management. Define model parameters, validation frequency and thresholds

 

Track model issues to closure. Develop expertise within the bank and thereby reducing the reliance on external support for periodic validation

 

Have a structured case management among model stakeholders like CROs, MRM Committee, Model Developers and Validators

 

Scale up on model management capabilities with minimal efforts. Set up iterative validation exercises without any additional cost

Brochures

rt360 Early Warning System

Identify credit risks proactively leveraging end-to-end predictive analytics

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rt360 Enterprise Risk Management

As technology and new business models evolve, you need to cope with risks arising from multiple facets of banking operations.

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rt360 Model Risk Management

Global regulators in recent times have paid an increasing attention to managing risks arising from extensive use of models in decision making.

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rt360 Asset Liability Management

Growing regulatory mandates by the Bank of International Settlements’ (BIS) demand automated systems for robust asset-liability management.

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rt360 RAROC Calculator

As you focus on credit growth for your bank, capital allocation and pricing is critical to maximizing profitability and driving sustainable growth

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rt360 Expected Credit Loss

With the introduction of the global International Financial Reporting Standards-9 (IFRS 9) and its equivalent Indian Accounting Standards (IND AS) 109, financial institutions are adopting scientific methods for computing credit losses.

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rt360 is a risk management product suite to manage the entire risk portfolio of banks and financial institutions that includes credit risk, capital allocation, pricing risk, liquidity risk, model risk and operational risk.

rt360 is designed by bankers, risk practitioners and technology specialists with a Business First, Technology Next approach, empowering banks and financial institutions to focus on their credit growth and profitability while managing their risks. The product is fully designed and made in India to address the complexities of the financial sector globally. The suite comprises of five distinct products to manage each of the risk portfolio.