Have you ever imagined leveraging the cutting edge technology to facilitate your model risk management process?
PwC can help your institution implement a holistic end-to-end MRM solution based on your existing GRC platform including Archer, MetricStream, ServiceNow, SAI Global, Riskonnect and others. Our MRM solutions provide significantly expanded capabilities when compared to the out-of-the-box capabilities of the GRC platforms. They cover all key workflows and processes typically needed as part of an MRM framework, and are supported by powerful and flexible model inventory and reporting systems. At a high level, the solution offers the following key capabilities:
House the organization’s model inventory and associated artifacts (e.g., model documentation, validation reports, ongoing monitoring reports).
Support model risk management processes and controls via flexible workflows covering the full model lifecycle.
Provide robust customizable reporting capabilities and notifications for various groups of stakeholders and committees.
Bring in flexible data model, role-specific functionalities and screens, and full auditability of changes to the information.
The following tabs provide more details on the key capabilities of the MRM Technology Solution along various phases of the model lifecycle
- Model identification / acquisition
- Model development & implementation
- Model validation
- Model approval
- Model use and ongoing monitoring
- Model maintenance and improvement
- Model risk reporting and management
Model identification / acquisition
Model vs. Non-model tool questionnaire & identification system
Flexible Model inventory capturing key model meta data with ability to capture multiple business uses
Model inventory system capable of supporting search for model by attributes
Auto assignment of unique IDs for Model or Non-Model / EUC
Role-based level of access control for models and validations
Comprehensive audit trail for all information changes and actions
Model development & implementation
Inherent risk assessment & model tiering functionality
Capability for storing multiple versions of model documents and other developmental and implementation / controls evidence in a centralized manner
Capability for documenting model weaknesses & limitations and associated risk mitigants as separate objects linked to validations, annual reviews, etc.
Model validation
Model validation scheduling
Initiate validation upon model inventorying
Automated notification of upcoming annual reviews and periodic revalidations
Validation staff assignment
Validation report, workpapers, and other artifacts storage & archiving
Residual model risk rating functionality
Validation findings tracking, reporting, and monitoring
Model approval
Model approval system with rule-based routing of approval requests to different stakeholders, delegation, and capture of approvals by stakeholders
Different approval pathways depending on the validation outcome: normal approval vs. exception-based / conditional approval
Track conditional approvals, issues and remediation
Ability to create exception reporting for senior management and committees
Model use and ongoing monitoring
Capability for capturing ongoing monitoring plans either as attachments or as detailed metrics and thresholds within the inventory record
Flexible workflow for capturing and routing of ongoing monitoring analysis results and reports
Facilitate independent review of monitoring results and conclusions by the 2nd line (where appropriate)
Facilitates distribution of reports to model users and other stakeholders
Capture of findings and events (regulatory and audit findings, model failures, etc.)
Ability to generate findings and initiate ad hoc validations as a result of monitoring
Annual Review workflow functionality with 1st line risk questionnaire and 2nd line review outcome capture
Model maintenance and improvement
Rigorous model change management process workflow
Initiate change request and capture information about the proposed change
Ability to implement different change review and approval pathways (e.g., for pre-approved / routine changes vs. non-routine ones)
Initiate change request and capture information about the proposed change
Route the request for approval by appropriate stakeholders and capture approvals
Model inventory maintenance and periodic certification functionality
Model risk reporting and management
Powerful reporting system
2nd line internal daily & weekly operational reports
Calculation and presentation of KRIs
Senior management and oversight committee reports
Automated Report distribution via email
Ability to create custom reports with internal and third party tools
Report administrator / editor vs. report user role-specific capabilities
Ability to output reports and metrics to various external formats (e.g., Excel, CSV, PowerPoint, Word, PDF, etc.)
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