Our dedicated experts, global regulatory expertise, and proprietary tools and frameworks help clients manage their model risk effectively and efficiently.
Risk Dynamics helps clients establish and enhance frameworks for model risk management (MRM) in financial services and beyond. Combining industry-standard approaches, benchmarks from our global MRM survey, and insights from our work with leading banks worldwide, we help clients create best-practice, sustainable foundations for MRM. We also assist them in building new capabilities, and in deploying new technology to meet increasing regulatory expectations efficiently.
For over 15 years, Risk Dynamics has helped banks, insurers and asset managers around the world stay at the forefront of model risk management. We have established robust, comprehensive model governance and extended MRM’s reach into new model types, particularly in emerging areas such as artificial intelligence. We have created detailed, practical MRM guidelines and templates; reduced MRM costs through standardization and demand management; and trained teams on topics from MRM fundamentals to modelling techniques.
Since 2015, we have convened the MRM community annually to discuss critical development and industry issues in a peer-to-peer environment. Supporting this effort is our series of MRM surveys, which covers all geographical regions and all financial services sectors. Participants receive personalized reports that include quantitative benchmarks and key industry trends. To participate in the survey and roundtables, please contact us.
As models proliferate and development processes become more complex, firms are increasingly relying on MRM workflow tools to manage the end-to-end model lifecycle.
Based on our deep experience in MRM and our clients’ needs, we have developed Wave for MRM, a dedicated workflow tool that combines the pre-populated standards and agile flexibility that today's complex, fast-moving organizations require.
Banks are facing growing pressure to have robust, reliable model governance. A European bank with significant US operations received regulatory feedback that its MRM approach needed wide-ranging enhancements within a short time. These enhancements included raising the profile of model governance across the global workforce, and creating a plan to roll out the changes throughout the model inventory. To assist in this effort, Risk Dynamics:
To ensure strong, consistent MRM, a European bank aspired to build a state-of-the-art MRM framework and function within one year. Risk Dynamics worked with the bank’s new MRM team to design the foundational elements needed for the MRM function, such as a detailed roll-out plan to support full implementation. These elements also included: