PHILADELPHIA, May 14, 2020 /PRNewswire/ -- The Risk Management Association (RMA) has launched the Model Validation Consortium to provide RMA member banks with expert validation services at a competitive price.
Banks are increasingly depending on models to run their business profitably and safely—which increases the importance of the models working well. To know for certain that models are working as intended and without error, banks need these critical models validated professionally. Typically, their choice has been to hire top-level talent and conduct the validation in house, or engage an external firm. Both options are expensive. Banks outside of larger cities are particularly challenged to attract and retain talent.
Recognizing these challenges, RMA put together a consortium of banks and model validation firms that allows both sides to benefit from efficiencies of scale. The RMA Model Validation Consortium reduces overhead expense for the banks while ensuring critical models perform as designed.
"The Model Validation Consortium is another example of how RMA is developing tools and setting standards, which is critical in any time but especially now," said RMA CEO and President Nancy Foster. "From the first validation project, banks can start achieving the benefits of lower costs and high quality."
Financial institutions that are interested in learning more about how the Model Validation Consortium can benefit them should email RMA at [email protected] or click here. To download an RMA Risk Readiness Special Coverage webinar on the importance of model risk management amid the COVID-19 pandemic, click here.
Founded in 1914, The Risk Management Association is a not-for-profit, member-driven professional association whose sole purpose is to advance the use of sound risk management principles in the financial services industry. RMA promotes an enterprise approach to risk management that focuses on credit risk, market risk, and operational risk. Headquartered in Philadelphia, Pennsylvania, RMA has 1,900 institutional members that include banks of all sizes as well as nonbank financial institutions. They are represented in the Association by 18,500 individuals located throughout North America, Europe, Australia, and Asia/Pacific.
SOURCE The Risk Management Association