Princeton Strategy Group
Princeton Strategy Group
ESG Frameworks, Climate Risk Modeling, Model Risk Management, AI/ML Model Validation, Risk, Finance, OP Risk and AML/Fraud Model validation.
Cloud based AI/ML driven Model Inventory
After the Great Financial Crisis of 2008, Federal Reserve requied all large banks to implement a comprehensive model inventory system and a number of MRIA/MRAs were issued related to it.
Our experts advised a number of large financial services firms on model risk management in addressing several MRIA/MRAs per FRB expectatons and we incorporated those insights in our Model Inventory Engine offering.
In June 2017, FDIC adopted supervisory guidance on Model Risk Management for smaller banks (>$1BN).
PSG offers a cost effective solution to banks of all sizes to meet FRB/FDIC guidelines without compromising essential functionality rquired for effective model risk management. It's a tiered offering, depending on the size and rquiements to pick and choose the features and pay only for those that are an immdiate requirement and expand as the needs grow.
Model Inventory Engine
The Model Inventory Engine enables organizations to maintain a cohesive database of models, complete with all necessary information and tools to manage model risk.
The tool provides a comprehensive interface for all model storage needs, while being simple to navigate and manipulate. For a quick introducion to the solution offering please read the following MIE datasheets.
*** The tool provides a comprehensive interface for all model storage needs, while being simple to navigate and change model criteria (MIE role Model Risk Management).
*** Timely tracking and management of validation findings is crucial to effective Model Risk Management (Model validation findings management).
*** Strong governance also includes documentation of model development and validation that is sufficiently detailed to allow parties unfamiliar with a model to understand how the model operates, as well as its limitations and key assumptions (Model document management).
*** Models may evolve over time either extended to include additional uses such as new portfolios, new segments or to adapt to new business environment. Sometimes model need to be changed to refit based on on-going monitoring usage findings.In all cases, where a model changes proper change management including governance, approvals and documentation need to be maintained (Effective model change control).
*** MIE enables capture of model risk at an individual model level and an aggregated RAG view at the model class or risk area levels. Model risk assessment is based on an individual model’s complexity, materiality,
uncertainty and any regulatory context where applicable. MIE’s Risk Assessment function displays overall model RAG and the RAG status of components that make up the model risk (Model Risk Metrics and Risk Reporting).
If you are interested in how this tool can help your model governance please contact us.