Mathematical models are increasingly being used to inform business decisions and estimate risk in a manner that is often material to the organization. Because these models can have material impact on an organization's business strategies and financial statements, it is imperative that the models are accurate at all times. This means the models are constructed in a sound and logical manner, can accurately produce real-world predictions, and are subjected to strong change controls to ensure the integrity of the model's performance at all times.
A bad model can create material financial misstatements, constrain revenue opportunities, result in poor strategic decisions, create regulatory violations, fines, and sanctions, damage an organization's reputation among its customers, employees, shareholders, and regulators, and more, depending on the purpose of the model.
Released on May 22, 2018, the new RSA Archer Model Risk Management app-pack helps organizations establish sound governance processes around the models they use to run their business on a day-to-day basis.
With RSA Archer Model Risk Management, you can:
- Document your organization’s model inventory and model documentation
- Track model and model inventory changes
- Track model validation and approvals
- Formally certify the model inventory is complete and up to date
- Document validation findings
- Analyze model performance indicators
- Decommission models as needed
Organizations can benefit from:
- A consistent and repeatable process for documenting, validating, and managing changes to models
- Reduced unauthorized changes to the model
- Improved accuracy of models
- Reduced likelihood of outdated information in the model
- Reduced financial penalties, financial losses, or unforeseen risks due to model inaccuracies or insufficient testing
- Improved visibility into the health and status of the model inventory
Interested in learning more about the RSA Archer Model Risk Management app-pack? Join us for a Free Friday Tech Huddle on Friday, June 8 for a live demo. Free Friday Tech Huddles are only available to RSA Archer customers. If you are not yet a customer but you are interested in learning more, please contact your local representative or authorized reseller—or visit us at www.rsa.com.
