Model Validation - Identifying Issues with Modeling

Model Validation - Identifying Issues with Modeling
Thought Leadership Webinar: Hear from a seasoned practitioner about the lessons learned from validating hundreds of models over the last decade. Take away information you can apply to your own models after hearing about issues others have had.
 
  Date:
April 28, 2021

  Time:
10:00 - 11:00 a.m. EDT
3:00 - 4:00 p.m. BST
 

  Presented By:
John Hurlock
Founder & President, Smarter Risk Management

 Session Length:
60 minutes

 

About This Webinar

Model risk is the possibility that a financial institution suffers losses due to mistakes in the development and application of financial models. One such risk is mistakes in the math utilized by the model. Model verification involves checking the math and the transformation engine that powers the model. Model risk management usually dedicates a significant amount of resources to getting the math part right. Especially on the part of software vendors when providing a significant number of transformation engines to financial institutions.

Model validation, on the other hand, is a more detailed review of models beyond just model verification. In addition to the math components, it also examines the process components of a model; has the purpose of the model been identified, have assumptions been developed and vetted, are the data inputs defined and understood, and what comes out of the transformation and how is it used.

We will tap into a  validation database to discuss the most common issues found when validating models. The models cover a wide range of areas like Anti-Money Laundering, Asset Liability Management, Credit Stress Tests, Credit Reserves, Credit Rating and a slew of customized models. Even though the models may be diverse, there are common issues that potentially can cause losses to a financial institution.

After this webinar, you will be able to;

  1. Gain a clearer picture of what a model validation provides to the organization.
  2. Review your models for the set of the common red flags.
  3. Enhance your model development and management activities.
  4. Engage management and the Board of Directors in model risk discussions.
  5. Understand why there is still an “explainability” issue with AI.

About Our Expert  

  
 
 

John Hurlock is the Founder and President of Smarter Risk Management (SRM), a boutique risk management consultancy. SRM is focused on developing and delivering risk management services and solutions to financial institutions, government entities, and industries throughout the United States and in international emerging markets.

Through his proprietary SMARTER approach to risk management, John applies a comprehensive methodology that consists of structured and consistent risk management processes. This results in practical strategic, financial, and operational benefits that strengthen the organization and improve overall and specific risk management.

He has worked with organizations that include community and regional banks, trillion dollar international financial institutions and government entities across North America, Africa, and the Middle East. His work includes the development, migration to and validation of various models, addressing regulatory orders and issues, and he been heavily involved in the establishment of risk analytics, including risk-based capital, credit origination and servicing, portfolio stress testing, asset liability management, operational risk and the various Basel Accords.

John has almost 40 years of experience, the first 15 years of which were spent as a community/regional banker. Prior to launching Smarter Risk Management, John directed Risk Management services at institutions including Bancware Corporation, Metavante Corporation and Sheshunoff Consulting + Solutions.

John received his MBA and undergraduate degree at the University of Wisconsin. He is an Adjunct Professor at Webster University’s MBA program and has facilitated training sessions for EuroMoney Learning Solutions. He is a member of PRMIA and the Risk Management Association (RMA).

 

Continued Risk Learning Credits: 1

PRMIA Continued Risk Learning (CRL) programs provide you with the opportunity to formally recognize your professional development, documenting your evolution as a risk professional. Employers can see that you are not static, making you a highly valued, dynamic, and desirable employee. The CRL program is open to all Contributing, Sustaining, and Risk Leader members, providing a convenient and easily accessible way to submit, manage, track and document your activities online through the PRMIA CRL Center. To request CRL credits, please email learning@prmia.org.

  Registration  
  Membership Type Price  
       
  Members (Sustaining, Corporate, RIM & Contributing)
COMPLIMENTARY  
  Non Member $30 USD
 
       

If this is your first time accessing the PRMIA website you will need to create a short user profile to register. Save on registration by becoming a member.

 
When
4/28/2021 10:00 AM - 11:00 AM
Where
Thought Leadership Webinar
 

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