Objective

To help the US-based asset manager control risk arising from its use of growing numbers of in-house and vendor risk models by validating the models and advising on enhanced controls and governance of model use.

CRISIL's Solution

• Checked the suitability of models and methodologies used in various steps of the validation process. Proposed changes where needed
  
• Performed validation of the models as per the best practices, keeping the materiality and requirement in view. For vendor models, liaised with vendors to ensure that the model is tested and updated regularly
  
• Identified the risks around control and governance structure for in-house and vendor models, and suggested remediation process
  
• Benchmarked the models and their output using industry-standard models and approaches
  

Client Impact

• Models and approach updated to industry best practices
• Enhanced efficiency and reduced costs in the risk-appraisal process for model inventory
  

Questions

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