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Model Risk Management Solution

Apparity’s innovative governance platform is trusted by the world’s largest organizations to enable their model risk management framework. Model risk and manual effort are reduced through model lifecycle automation.

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Model Risk Management Today

Maintaining an accurate inventory of models developed with EUC tools like Excel, Access and R is challenging. These models are complex, often copied, and are typically subject to strict federally mandated controls.

On average, 35% of all models used in banking are built using one or more EUC application. As a result, they are all subject to the same scrutiny as any other model.

However, these EUC- based models are not subject to the same strict scrutiny of a bank’s IT- built models. Compliance can only be assured if controls are implemented and monitored separately from the model and the model owner.

The Apparity EUC Risk Management platform is purpose- built to meet and evidence the oversight that examiners are required to affirm.

Model Risk Management Solution Features

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Automate Scanning & Risk Assessment

  • Flexibility of scheduled global scans to sweep the file landscape or local ad-hoc scans to augment the existing model inventory.
  • Gain a complete understanding of model risk based on model structural complexity and organization- specific qualitative assessment.
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Create a Complete & Centralized Model Inventory

  • Create a truly complete model inventory by automating identification of models.
  • Track models that are managed with controls versus those that are not.
  • Gain visibility of file status and meta data for all models in the inventory.
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Increase Accuracy with Logic Inspection

  • Easily identify critical file 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 copies, renames, moves and versions regardless of original source with Apparity’s exclusive “Zero Loss Fingerprinting” technology.
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Gain Insights From Real-Time Reports

  • Effortlessly build and run custom reports tailored to individual user requirements and model risk policy compliance outcomes.
  • Evidence model risk programs to regulators at any time, eliminating the need to generate ad-hoc reports at the last minute.
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Apply IT-Grade Controls & Approval Workflows

  • Provide model owners with complete visibility into all changes made in critical model spreadsheets.
  • Align review and approval workflows to MRM best practices.

Model Risk Management Solution Benefits

Picture of a businessman in a state of peace of mind from a comprehensive model risk management solution
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Increase confidence in maintaining a complete inventory with error-free models.

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Reduce manual effort from all model stakeholders 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.

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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 mandates from regulators like the OCC and FDIC.

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Next Steps

Learn about best practices in validating EUC-based models with our free Model Validation Guide.