SR 11 - Model Risk Management

SR Letter 11-7 is a joint FRB and OCC directive that has become the premier standard for model risk management for banks, but its principles having been adopted by many other U.S. financial institutions and business entities. It addresses model construction, usage, and validation. It goes on to review model management responsibilities including oversight and policies. The guidance also cites the need for the uniformity of model management and policies across businesses and functions within an organization.

To provide an in-depth understanding of the management of models by means of a detailed examination of all of the above-referenced areas in the presentation

• Background and objective of SR 11-7
• Defining model risk
• Model utilizations
• Summary review of types of models
• Model risk management
• Development
• Implementation
• Use
• Model validation
• Model governance
• Management oversight 
• Policies and control
• Roles and responsibilities
• Actual case studies reflecting model risk episodes and consequences

Financial institutions and other business entities rely on quantitative analysis models, generated to perform key activities such as risk management, investment selection, investment valuations, liquidity management, capital management, and financial forecasting.

The sound management of the risks inherent in the use of mathematical models is imperative to reduce the risk of relying on flawed models or incorrect use of models. 

SR Letter 11-7 provides comprehensive guidance for banks on effective model risk management and can be used as guidance by any business entity. This presentation will provide participants with an understanding of the background behind the SR Letter 11-7 and all aspects of the guidance it provides. It will further provide a detailed review of types of models and model usage, model development, model validation, and model risk oversight.

This webinar will provide valuable assistance to all personnel with responsibility for: 

• Management development, validation, and oversight 
• Senior and executive corporate management
• Corporate Board members
• Risk management within a business entity
• Compliance management within a business entity 
• Auditing within a business entity 
• Educational programs at the university level

Robert Geary is the founder of Greenwich Risk Management Advisory Services "LLC" and services as the principal consultant on many of the firm's consultancy mandates.
Robert has been a banking and finance industry professional for 43 years with 34 years serving in a variety of senior Treasury, financial market, asset management and risk management roles at JP Morgan Chase & Co. For the last 6 years of his career with JP Morgan Chase, Robert had undertaken risk management oversight roles that have included Head of Market, Credit and Operational Risk Management for Chase Asset Management and being Managing Director of Fiduciary Risk Management for the Corporation. During Robert's career he has served on the Board of Directors of Chase Manhattan Overseas Banking Corporation as well as having served on numerous senior committees. Prior to joining Chase, he held positions at Chemical Bank, Chrysler Financial Corporation and National Bank of North America.
Robert holds a BA degree in Economics from Pace University and did graduate studies in finance at New York University Graduate School of Business. He is a Past President of the New York Athletic Club and iscurrently a member of the Executive Advisory Board of St. John's University Department of Accounting and Taxation.