Having full confidence in the analysis the drives key decision making is tantamount to sound risk management. With this as a driving force, Mathematika Consulting offers clients guidance in validating that their risk process is configured appropriately for the client’s intended methodologies, and most importantly, that these methodologies are correctly reflected within the analytics used by the client to manage and measure their interest rate risk. A complete risk model validation process goes beyond simply substantiating the valuations and risk assessment, however, model validation typically involves multiple parties necessitating clear lines of communication and information-sharing to promote efficiency.
The different groups involved in model validation can include employees of the client who work directly with Mathematika Consulting, the client’s Internal Model Validation Team, individuals who are not employees of Mathematika Consulting’s clients but are tasked with independently assessing all models used by the client, and supervisory bodies including the Federal Reserve, Office of the Controller of the Currency, and other domestic supervisory bodies.
Mathematika Consulting is committed to assisting clients determine a validation approach, leverage resources for the validation process, create any needed documentation, and administer any required third-party interaction.
