Advanced analytic models play a key and expanding role in most institutions, accelerating decision making and enhancing the functions of key technology and operating platforms. Standards for the documentation and validation of models have changed significantly as a result of the financial crisis. Due to the increased reliance on models, regulators have heightened governance standards dramatically. Corporate boards and management want greater visibility into the models that play increasingly significant roles in decision making and key aspects of the business.
Strong model governance programs include standards for model documentation, oversight and validation that ensure the effective use of models in decision making functions, while signaling the need for changes and upgrades when model deterioration occurs
Analytic Focus will work with you to make this process quite simple. Documentation provides the visibility inside the “black box” to enable all key parties to know how a model was developed, and the scientific basis for its decision capability and quality. Validation provides the audit trail and oversight that allows management to know whether the model was constructed effectively and operating optimally, to produce the intended result that the business intended during the development and implementation phases.
What may be conceptually simple is not always easy to implement. Many organizations are still running models that were developed during an era when documentation standards were weak and management was focused on the speed of implementation rather than governance. Recreating the documentation trail long after the data sources have changed or resources have turned over may be quite difficult. That’s where we can help. Analytic Focus has trained resources that can support your organization in upgrading documentation to the current industry standards. Our technical experts can validate analytic and decision models to give management the peace of mind that models are operating as intended and will meet regulatory standards.