Regulatory guidance defines a model as "a quantitative method, system, or approach that applies statistical, economic, financial, or mathematical theories, techniques, and assumptions to process input data into quantitative estimates." Models must undergo periodic independent validation. Areas in which models are used include:
- Capital Adequacy
- CRE Stress Testing
- BSA transaction monitoring systems
- OFAC filtering systems
- Interest Rate Risk Testing
- Liquidity Stress Testing
Bank Secrecy Act/OFAC Model Validation
We are well versed in conducting validations of BSA/AML transaction monitoring and OFAC filtering systems. We have conducted numerous validations of the following systems:
- Patriot Officer
Why Use Us for Model Validations
We are experienced in conducting model validations and providing model validation reports ! We have conducted model validations in the following areas:
- Capital Adequacy models
- CRE Stress Test models
- BSA/AML/OFAC systems (Prime, FCRM, Verafin, BAM+, Patriot Officer)
- Liquidity Stress Test models (including Contingency Funding Plan model validation)
- ALLL models
- Risk Assessment models
Our model validations use full data sets, conduct full testing of all model aspects, and result in detailed reports which can be provided to auditors and regulatory examiners !
Reach Out to Us Today
Let us help with your model validation needs, so you can achieve greater efficiency and regulatory compliance ! Reach out today for a free consultation !
Capital Adequacy, IRR, Liquitiy, ALLL Model Validation
Capital Adequacy, IRR, Liquidity, and ALLL are some areas in which models are in widespread use regardless of institution size. Effective models in each of these areas are very useful and, in fact, essential, to effective day-to-day management and supervisory oversight, as well as compliance with regulatory requirements.
We have a wealth of experience in model validation in each of these areas and can help your institution to manage day-to-day operations more efficiently and meet regulatory requirements !