Due to the missing risk captured, the quality of reporting towards the Senior Executive / Management, responsible to take decisions for the firm, is negatively impacted. Existing books focus on issues related to the limitations of modeling techniques rather than issues related to end-to-end Model Life cycles across organizations.This book helps to fill that gap by providing theory and practical insights on setting up a state-of-the-art model risk management (Including MRM Framework, Governance & Reporting Best Practices).
The book begins by introducing the readers to model definition, identification usage, and its impact on a financial institution. The book then talks about the model risk management framework, its components, and requirements for model inventory.
It then moves past to teach the readers about setting up model lifecycle management, model governance, validation, and assessment process.By the end of this book, readers are expected to be able to understand how Model Risk Management Framework can help to manage the risk of using Financial Models.
