- Model Risk Management
- Enterprise Risk Management
- Data Governance & Analytics
- Regulatory Compliance (CECL)
- AML Compliance
governance, risk and Compliance
Governance, Risk and Compliance (GRC) refers to a strategy for managing an organization’s overall governance, enterprise risk management and compliance with regulations. It is a structured approach to aligning IT with business objectives, while effectively managing risk and meeting compliance requirements.
Model Risk Management (MRM)
The reliance on models to assist in an ever-widening scope of decision making at financial institutions has increased significantly and many banks have seen a dramatic increase in the number of models (10 to 25 percent annually at large institutions). As the use of these models increases, so does the “potential for adverse consequences from decisions based on incorrect or misused model outputs and reports” Model error refers to the simplification or approximation of reality within models, incorrect or missing assumptions, incorrect design processes, and errors in measurement or estimation. Model misuse is the application of models outside the use for which they were designed and/or intended.
As a result, Model Risk Management (MRM) has become a key focus both at banks and regulatory agencies, requiring the identification and management of model risk both at the individual model and in the aggregate enterprise-wide level.
HNC Smart Solutions bring significant real-world expertise in the development and implementation of an enterprise-wide MRM governance framework, model development and validation as well as MRM audit support.
 FRB SR 11-7 / OCC 2011-12, Supervisory Guidance On Model Risk Management
- MRM Governance Framework
- MRM Program Assessment
- MRM Reporting
- MRM Workshops
- Model Development
- Model Validation
- Model Risk Audit Support
Data Governance & Analytics
For most organizations, a single data warehouse is no longer a reality. Big data sources, increasing complexities, operational intelligence, and information diversity creates an environment that requires a consistent and thorough data management strategy. Added complexities mean more moving parts and a requirement to understand the intricacies of each data process flow.
This global trend has not gone unnoticed by regulators, and was substantiated by among others the Basel Committee on Banking Supervision (through BCBS 239) towards a requirement for robust data governance, framework that will ensure data quality, integrity, traceability, consistency and replicability for decision making purposes.
HnC Smart Solutions can assist you establish and maintain a robust:
- Data Governance Framework;
- Data Quality Framework;
- Change Management Framework
Current Expected Credit Loss (CECL) / FRS9
The changes required by CECL require a much deeper level of modeling, analysis
and reporting than what has previously been require