GRC-based Model Risk Management Technology Solutions

A tech-enabled service

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 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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Jason Dulnev

Jason Dulnev

Principal, Risk Analytics, PwC US

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