Financial Risk
Model Validation & Model Risk
Independent model validation aligned to SR 11-7, TRIM, and PRA SS1/23 — from conceptual soundness and data quality through implementation testing, benchmarking, backtesting, and outcomes analysis.
Outcomes you can expect
- A validation opinion your regulator and board will accept
- A clear, prioritised list of model weaknesses and remediations
- A model inventory and lifecycle you can actually manage
Typical engagements
- Conceptual soundness and methodology review
- Data lineage, quality, and representativeness testing
- Implementation testing, benchmarking, and backtesting
- Model risk framework, inventory, and tiering
Related reading
LGD & EAD Validation: Common Pitfalls
PDs get the attention, but LGD and EAD errors quietly move ECL and RWA more than most banks realise. This is where independent validation actually earns its fee.
Read the articleOther services
Financial Risk
Financial Risk & ALM
IRRBB, liquidity, and asset-liability management for banks and treasuries.
Financial Risk
Credit Risk & IFRS 9
PD, LGD, EAD and IFRS 9 ECL models — designed, calibrated, and validated.
Insurance & Actuarial
Insurance / Actuarial & Solvency II
Solvency II pillar work, ORSA, technical provisions, and reserving for insurers.
Emerging Risk
Climate & Catastrophe Risk
Physical and transition climate risk, and catastrophe frequency-severity models.
Emerging Risk
Geopolitical & War Risk
Sovereign, war, sanctions, and supply-chain risk translated into balance-sheet numbers.
Data & AI
AI & Quantitative Risk Models
Machine learning and AI models for risk — designed to be explainable and governable.