Model Risk Management (MRM): Creating and maintaining a strong MRM process is integral due to the increasing complexity of models in the financial services industry due to the emergence of CECL, IFRS 9 and IFRS 17. These changes have led to a highly dynamic environment for evaluating and managing model risk. The KPMG and SAS approach to MRM enables efficiency, provides the needed governance, controls, compliance, documentation management and reporting to help take organizations to the next level. SAS implements the MRM tool and KPMG provides services over the wide-ranging model lifecycle and understands how to develop and improve the MRM framework. The combined approach allows organizations to leverage technology to improve efficiency throughout the MRM process, while enhancing business users’ and stakeholders’ experiences.
The SAS/GARP AI/ML Model Risk Management survey investigates where firms are heading.