Risk Model Validation

Standard & Poor’s Risk Model Validation Services evaluate and verify the performance of risk-related models that institutions use for internal risk ratings systems and Basel compliance.

Risk Model Validation Services provide:

• An independent and objective confirmation that helps in the decision-making process;
• An evaluation of the risk model design, gaps with respect to regulatory standards, internal standards, or best industry practices;
• An evaluation of the governance structure and current validation approach to better understand the roles of the key stakeholders responsible for ensuring the ongoing performance of each risk model; and
• Verification of the effectiveness of the model operations with the establishment of key performance indicators.

Risk Model Validation Services:

Ratings System Validation

Validation Gap Analysis