Model Risk Management
and Audit Preparation

Experian’s business consultants partner with financial institutions to provide an independent, third-party review of its model risk management and assist with audit preparation and compliance to OCC Bulletins 2000-16 and 2011-12.  An in-depth review of the Thrift’s risk exposures, its business activities and the complexity and extent of its model use – validation, development, implementation and use, governance policies and controls - will yield a gap analysis report and recommendations to meet compliance.   

A model risk management review and audit preparation will provide the institution with an essential comprehensive review of established policies and procedures  of – pricing models, acceptance models, authorization models, behavior models, alongside how the day-to-day is actually being performed and the report identifies any discrepancies between current organizational and operational actions, policies and procedures and the OCC guidance.  

Features

The report will include a series of actionable recommendations for bridging the gaps, whereby a suggested migration path will take into account the required next steps that need to be taken immediately and prior to the OCC audit. Some examples of these areas of focus include:

• Model documentation and specifications
• Implementation standards and protocols
• Consistency of model assumptions with utilizations
• Value and usage of monitoring reports 

Other Reports Available

Retrospective analysis and model validation reports are also available to supplement the thrifts’ standard, established periodic internal monitoring procedures in order to prepare for an audit. Experian can perform the same analysis on other comparable existing generic models to fulfill the OCC’s guidelines on model benchmarking.  Bureau-based models can provide a valuable point of reference with respect to the rate at which internally built models are degrading. 

• Actual vs. Expected Score Distributions
• Actual vs. Expected Characteristic Distributions
• Override Analysis
• Scorecard Performance Analysis
• Actual vs. Expected Outcome Distributions
• Forecasts of Model Performance

Discovery Session

To learn more about a model risk management business review and audit preparation, complete the form on this page for a complimentary discovery session to help ascertain your bank’s specific compliance review needs.

About the Global Consulting Practice

Experian’s business consultants deliver powerful insight, which is used by clients to enhance credit management strategies across their consumer and small business portfolios and the customer lifecycle.  The Global Consulting Practice is a credentialed consultancy dedicated to creating measurable and sustainable value for organizations around the globe in financial services, banking, mortgage, automotive finance, telecommunications and utilities, microfinance, retail credit, and debt collections.  We specialize in analytics-based decision strategies, data-driven solutions, regulatory compliance and fraud risk management across acquisitions, customer management, collections and overall portfolio management.

Experian’s business consultants provide clients with exceptional credit and fraud risk management strategic insight, detailed enhancement opportunities, and deployment strategies through deep business subject-matter expertise and client intimacy, including client engagement methodology to ensure consistency.   We have a deep knowledge of data, analytics and software, and have demonstrated the ability to synthesize this intelligence with the deep understanding of credit management principles and practices to solve our clients complex business needs.

•  Average of 20 years experience per consultant
• 43 consultants based throughout Asia Pacific, EMEAI, NA and the UK
• Over 300 engagements across the globe in the past 12 months
• Teams with local knowledge of best practices

To learn more, contact your Experian representative or call 1 888 414 1120.