Comprehensive Model Validations
GRC Solutions is a leading provider of model risk management services. Model risk emanates from a variety of sources, including model design errors, data errors, implementation errors and usage errors. Independent model validation is an essential part of an institution’s model risk management program. We conduct pre- and post-implementation validations that help ensure model integrity, reduce model risk and lead to better decision-making. GRC’s model validation process includes evaluation of conceptual design, ongoing monitoring (process verification/benchmarking) and outcome analysis (backtesting). Our proprietary methodology encompasses the leading regulatory guidance, such as the Board of Governors of the Federal Reserve System (“FRB”) (SR 11-7) and the Office of the Comptroller of the Currency (“OCC”) (OCC Bulletin 2011-12), the Federal Deposit Insurance Corporation (“FDIC”) (FIL-22-2017), and the New York State Department of Financial Services Superintendent’s Regulations (“DFS”) Part 504.
Strengthening Model Governance
Financial institutions without adequate model governance run the risk of serious financial, operational and reputation-damaging consequences. GRC Solutions works closely with clients to strengthen oversight by reviewing their model governance and control structure framework, identifying gaps and providing recommendations for improvement. Institutions also rely on GRC’s expertise in developing and updating policies and procedures.
Detailed Risk Assessments
GRC Solutions has extensive experience conducting risk assessments for financial institutions. Our Risk Assessment process drives change by evaluating inherent risks, existing mitigating controls and residual risks. The results of our assessments enable our clients to clarify their institution’s risk appetite, improve their risk control framework, allocate resources more effectively to address higher risk exposures and enhance their compliance program.
The Specialized Expertise You Need
GRC Solutions offers effective and efficient ways for financial institutions to mitigate risks and meet regulatory requirements. In addition to the services above, clients count on us for:
- Transaction Validations – Data lineage and transaction mapping
- Rule Calibrations – Tuning and optimization
- Lookback Reviews – Voluntary and mandated transaction reviews
- System Conversions – Pre and post-implementation reviews
We deliver well-planned and implemented risk-based solutions supported by robust analytics and processes that encompass the latest supervisory guidance.