rt360 Model Risk Management

Manage model risks effectively

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Effective model risk management framework to manage, measure and mitigate model risks

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).

Key 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

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

Brochure

rt360 Model Risk Management

Manage the lifecycle of models used in your organization to mitigate risks arising from them and to ensure compliance

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BCT Digital’s rt360 risk management product suite transforms the world’s leading enterprises, drawing on the strengths of next-generation technologies, sophisticated AI/ML models, data-driven algorithms, and predictive analytics. Its revolutionary Fintech, Regtech, and SustainTech solutions help enterprises optimize their core governance, risk, and compliance processes, enabling them to augment their positioning and go-to-market capabilities.

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