"To the extent that models are used to generate amounts included in public financial statements, any adjustments for model uncertainty must comply with generally accepted accounting principles" (SR 11-7, 2011).

---

Day	2023 Points	Practice
		Business transformation model
		Definition of model
		Models
	Model management
27 March 2023	Model governance
	Model validation
	Model inventory
	Model risk

---

Keywords: quantitative decision-making tools, statement of purpose, sensitivity analysis, weak challenge, linkages, European standards, US Guidance

---

Português: modelo

---

Patel, Anand. Model governance and model risk. Models are increasingly being used in different areas of banks. Risk management models and pricing models for financial instruments come to mind first. However, the scope of modelling and linked processes (such as algorithms and Artificial Intelligence) is fast expanding and should also be considered. This article argues that the increasing reliance on models requires a sound model governance and model risk management framework for business reasons as well as to comply with supervisory requirements such as the ECB TRIM Guide. Available from < https://home.kpmg/xx/en/home/insights/2018/04/model-governance-and-model-risk-fs.html >. access on 4 January 2023.

US Guidance on Model Risk Management (SR 11-7). Board of Governors of the Federal Reserve System, Office of the Comptroller of the Currency, 4 April 2011. Available from < http://www.ilanet.com.br/portal/pub/Express/Model/sr1107a1.pdf >. access on 5 January 2023.

-- GregorioIvanoff - 14 Mar 2021

to top