Model Risk Management in Practice: A hands-on guide helping you with the design, implementation, monitoring, and reporting of Model Risk

Learn to implement an end-to-end Model Risk Management framework with a focus on governance and reporting to facilitate effective decision making. Key Features Develop an Industry Standardized Framework across Model Lifecycle Management Design and build Model Risk Assessment Process A detailed walkthrough of real-world case studies in setting up & managing model risk using SAS Book DescriptionDue to the missing risk captured, the quality of reporting towards the Senior Executive / Management, responsible to take decisions for the firm, is negatively impacted. Existing books focus on issues related to the limitations of modeling techniques rather than issues related to end-to-end Model Life cycles across organizations. This book helps to fill that gap by providing theory and practical insights on setting up a state-of-the-art model risk management (Including MRM Framework, Governance & Reporting Best Practices). The book begins by introducing the readers to model definition, identification usage, and its impact on a financial institution. The book then talks about the model risk management framework, its components, and requirements for model inventory. It then moves past to teach the readers about setting up model lifecycle management, model governance, validation, and assessment process. By the end of this book, readers are expected to be able to understand how Model Risk Management Framework can help to manage the risk of using Financial Models.What you will learn Define model criteria and identify them using decision tree approach Understand the types of model risk and its regulatory implications Identify and capture model risk sources Implement various methodologies for qualitative/quantitative assessment Formulate Model Risk Quantification Process Develop Model Risk Report for effective decision making Analyze model change, its triggers & gather monitoring requirements Build Model Risk Management Framework for AI & ML models Who this book is forIf you are a Financial model developer, model validator, model auditor, or senior executive who receives reports/advice based on Financial Models, this is the book for you. Even if you do not have prior Financial Model Developer / Validator experience, this book can help you to be a practitioner in Model Risk Management

Table of Contents:
Table of Contents What is a Model? What is Model Risk & Why a robust Model Risk Management needed? Model Risk Management Framework & its components Model Workflow and Lifecycle Management Model Governance Model Risk Management & Model Validation Model Risk Sources Model Risk Assessment Process & Quantification Model Risk Reporting Categorization of Model Change as Operational Risk or Other Risks Model Change Trigger Notification & Monitoring Model Risk Management for AI and Machine Learning Models Model Risk Management for Credit Risk Models

About the Author :
Sonia Sodhi is a pioneer on Model Risk Management. She spearheaded Global Model Risk Management Platform Implementation and Rollout at ING Bank N.V. Currently she is working for Aegon Group (Insurance conglomerate) as Senior Model Risk Manager and responsible for rolling out Model Risk Management Policy, Standards & MRM Platform across AEGON group. Sonia holds a master's in applied physics from Indian Institute of Technology and a Post Graduate Diploma in International Management. She has 22+ years of experience and has worked with International Banks (Citibank, Standard Chartered, ING) in multiple locations (Singapore, Brussels, Amsterdam). She has a deep understanding of Financial Markets Instruments and related back-office systems.