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Model Risk Management (MRM) Solution

Apparity’s risk management platform enables your MRM framework. Model risk and manual effort are reduced through a central model inventory, model lifecycle automation and reporting tools. This leads to a program that:

  • Stands up to regulatory & supervisory scrutiny
  • Provides management with a clear understanding of model risk and controls status
  • Reduces time spent by end users on manual controls & clunky systems
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Model Risk Management Today

Quantitative models are increasingly leveraged by orgs of all sizes to make critical business decisions. Furthermore, models are often used to support financial and regulatory reporting processes, which are coming under increasing scrutiny of agencies like the OCC and PRA.

Any incorrect or misused model outputs increase model risk, potentially resulting in poor decision making, financial loss, supervisory/ regulatory enforcement action and reputational damage.

For that reason, identifying and managing model risk has become a necessity.

MRM Automation Benefits

Picture of a businessman in a state of peace of mind from a comprehensive model risk management solution
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Maintain a complete, centralized model inventory.

Illustration depicting a reduction of manual effort

Reduce manual effort from every role in your MRM program with a full suite of automated tools.

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Save time & money with an all-in-one enterprise solution, reducing the complexities and costs of integrating multiple systems.

Illustration depicting sustaining a successful MRM program

Sustain a successful technology- driven model risk program with support from the industry’s best professional services team.

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Achieve peace of mind knowing the model risk program will meet supervisory guidance and regulatory mandates.

MRM Software

MRM software provides the tools needed to enable your risk management framework in a reliable and efficient way. Manual model governance is unreliable and requires elevated levels of user effort, increasing the burden of model risk activities. Manual controls are difficult to maintain and likely to lead to failures and deficiencies due to human error or fraudulent activity.

Models are complex, requiring high levels of rigor in testing and documentation by highly qualified individuals. Trying to manage model risk through manual efforts distracts from trying to create robust and reliable models to begin with.

Apparity’s risk management platform helps manage the entire model lifecycle, providing tools for everyone from model owners to model validators.

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Model Identification & Risk Assessment Automation

  • Run scans to identify every model across your network.
  • Create custom risk assessments to determine materiality and model impact.
  • Algorithmically generate a risk scorecard based on comprehensive inputs.
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Create a Complete & Centralized Model Inventory

  • Create a complete, centralized model inventory across any model file format (.SAS, .MATLAB, .R, etc.).
  • Centrally store supporting documentation on model development, model validation, testing results, etc.
  • Track model validation status and automatically flag when models approach periodic validations.
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Gain Insights From Real-Time Reports

  • Effortlessly build and run custom reports across all program data.
  • Create management dashboards to track and communicate the overall health of your MRM program.
  • Eliminate the burden of manually generating ad-hoc reports at the last minute.
Additionally, for orgs with a large population of end user computing (EUC) models, Apparity offers robust controls to effectively manage them.
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Increase Accuracy with Logic Inspection

  • Easily identify critical changes, errors, and excess formatting for Excel-based models.
  • Quickly identify major error groups with clear output graphic representation.
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Continuous Monitoring & Audit

  • Empower all model stakeholders through a holistic view into access and version control of important EUC-based models.
  • Track and record all model copies/versions, file renaming and location moves with Apparity’s exclusive “Zero Loss Fingerprinting” technology.
Apparity MRM Framework Guide cover image

Next Steps

Learn about best practices in developing a MRM framework enabled through technology. While this guide is focused on SR 11-7, the guidance is universal for most MRM programs.