Heightened regulatory scrutiny. Inadequate practices and expertise. Increasing complexity and automation. Growing financial and reputational risks. Today’s financial institutions are enduring an array of critical challenges as their reliance on models increases.

The use of models to evaluate risk, assess capital adequacy and liquidity requirements, monitor customer behavior, manage data analytics, and support investment decisions has become crucial to business efficiency, risk management and overall profitability in today’s environment. Financial institutions are increasingly exploring new strategies to better manage model risk as their number and complexity increase amid the proliferation of digital technology, use of big data in sophisticated modeling techniques and fast-emerging automation capabilities.

Make no mistake – Model Risk Management (MRM) is becoming a leading priority today as financial institutions increasingly realize its critical importance to their operations, growth and future prosperity.

How KPMG can help

KPMG specialists have deep domain expertise, and extensive experience across all model types. We can help re-design your operating model to improve your MRM processes and reduce cost through application of our MRM managed services and deployment of our leading automation tools. The KPMG Model Risk Management Application has an easily customizable modular setup. With comprehensive quantitative and qualitative validation, complete model inventory management and standardized reports, the application can achieve automation, consistency and cost-optimization for MRM processes.

With extensive on-the-ground experience, and over 5000 financial risk management specialists supported by 2000 managed service analysts globally, KPMG helps simplify regulatory compliance for model risk, enhancing efficiencies, streamlining reporting and accelerating success.

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