In the ever-evolving landscape of risk management, financial institutions face unprecedented challenges as model portfolios expand, increasing the complexity of market risk, credit risk, operational risk, and pricing models. With evolving regulations and factors like ESG, generative AI, and economic volatility, staying ahead is paramount.
In the ever-evolving landscape of risk management, financial institutions face unprecedented challenges as model portfolios expand, increasing the complexity of market risk, credit risk, operational risk, and pricing models. With evolving regulations and factors like ESG, generative AI, and economic volatility, staying ahead is paramount. At SCG, we offer holistic support throughout the model lifecycle, from meticulous model development and validation to ongoing model monitoring. Our team of risk experts is well-equipped to navigate these complexities, ensuring compliance with regulatory requirements such as IFRS9, CECL, and CCAR, and seamlessly integrating new guidelines. Leveraging a blend of MRM practitioner expertise and cutting-edge AI and automation tools, our managed services model maximizes efficiency, ensuring robust and adaptable risk management strategies. As the adoption of models in major banks increases by over 15% annually, financial institutions expose themselves to greater model risk and growing regulatory pressures. Regulatory bodies like SR 11-7 and CP6/22 push model risk management (MRM) teams to enhance model governance, prevent model misuse and deterioration, and tackle potential adverse outcomes. MRM teams are reassessing workforce strategies and exploring new technologies and automation. Our specialists have developed MRM tool to automate a common bottleneck—test interpretation and documentation—without disrupting your current modeling setup.