Model Risk Management
VALUE PROPOSITION
- A major Digital Transformation leap, utilising ELEMENT’s revolutionary schemaless Knowledge Graph technology to richly capture model attributes, scenarios and testing activities, plus seamless data source connectivity
- Unparalleled implementation speed, taking only 10 weeks to pilot and several more weeks for each iterative step, due to ELEMENT’s whitebox transparency and effortless connectivity to data sources
- Enhanced flexibility to adapt to changing regulatory requirements, catering for any risk model using any process and data flow
- Lower Total Cost of Ownership, accomplished by shifting to OpEx via a low code cloud platform and decreasing labor-intensive tasks by embedding Composite AI technologies
Modernising risk modelling infrastructure and lifecycle management at a world-leading bank – demonstrating advanced AI modelling, IP asset cataloging and workflow, and enterprise-wide data integration and cross-functional use
BACKGROUND
Global bank faced multiple issues with its Model Risk Management (MRM) processes, resulting in poor data quality, inefficiency and limited reliability
Largely manual processes to audit and investigate model accuracy
Models and related data spread across multiple, segregated systems
Sub-optimal IP controls, which created operational risk
Jeopardised ability to comply with risk-related regulations
TARGETS
- Revamp the entire MRM lifecycle for risk planning, model development, monitoring and evaluation, improving model value and adaptability
- Achieve greater control and utilisation of diverse data sources for greater functional effectiveness and regulatory compliance
- Markedly reduce infrastructure and labour costs resulting from fragmented systems and processes
ADDRESSING THE NEED
- Support for scenario planning and risk model development, applying multiple AI-based modelling methods
- Comprehensive MRM lifecycle support includes full auditability, model playback, and adaptability to regulatory changes, plus collaborative cross-functional involvement
- A global model inventory across all business lines, captured using ELEMENT’s revolutionary knowledge graph
- Continuous monitoring of model use and efficiency with automated detection of threats to model integrity (changes to data and sources), using “SecureSwan” technology with custom integrated alerts
Other Use Cases
