SAS helps banks develop, validate and monitor models to meet evolving regulations

Chartis has recognised SAS^® software’s “completeness of offering” and “market-share potential” in naming the analytics powerhouse a category leader in Model Risk Governance Solutions 2017 RiskTech Quadrant^®.

Regulatory scrutiny – not to mention new accounting standards such as IFRS 9 and CECL – have put model governance at the forefront. Companies must identify, monitor, control and document all risk categories. Chartis emphasises that firms need an adaptive model risk governance system to react swiftly to change.

“Financial institutions are under increasing pressure from regulators to ensure that they have an effective enterprise-level model risk governance framework in place,” said PeymanMestchian, Managing Partner at Chartis. “SAS has a comprehensive solution that offers a detailed and centralised view of most risk and financial models, so that the related findings can be precisely monitored and managed throughout the model life cycle.”

SAS Model Risk Management provides governance of the full model development life cycle and risk management life cycle, from risk identification to risk assessment. The offering includes a centralised model inventory, model review and validation, and flexible workflows and dashboards to keep customers on pace with evolving policies and regulations.

Per Chartis, SAS demonstrates superiority in all three requirements for “completeness of offering”: identify and measure model risk, document model risk governance frameworks (including validation deadlines and responsibilities), and integrate model risk controls with governance frameworks. SAS also excelled in “market potential” for numerous reasons, including scalability of business model, growth strategy and brand.

“For businesses to satisfy regulatory compliance, they must have confidence in models that support business-critical, risk-based decisions,” said Simon Goldsmith, Head of Risk Solutions at SAS UK & Ireland. “SAS’ model risk management solution reduces model risk and increases value by providing enterprise-level oversight throughout the model life-cycle. Stakeholders can conduct fact-based conversations and demonstrate model quality effectively, ensuring that they can keep pace with the latest risk policies and regulations.” 

SAS was recently named a category leader in the Chartis RiskTech Quadrant for Credit Risk Management Systems for the Banking Book and the Chartis RiskTech Quadrant for Enterprise Fraud Technology report.