Model Validation & Governance

Independent validation that regulators trust and examiners respect

Deep expertise across every financial model type and regulatory jurisdiction. We validate to the standard of SR 11-7 and OCC guidance — and build governance frameworks that make compliance sustainable, not just survivable.

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Model Validation

Our team of senior quantitative analysts brings decades of hands-on experience validating models for financial institutions of every size — from community banks to global systemics. We don't just check boxes; we stress-test assumptions, challenge methodology, and ensure your models perform as intended under real-world conditions.

Model Types We Validate

BSA / AMLTransaction monitoring, CDD
Fraud DetectionRules-based and ML models
Credit RiskScoring, decisioning, PD/LGD/EAD
CECL / IFRS 9Expected loss provisioning
Market RiskVaR, pricing, curve building
ALMInterest rate risk, liquidity
Mortgage AnalyticsPrepayment, pricing, pipeline
Stress TestingDFAST, CCAR, scenario models
AI / ML ModelsBias detection, explainability

Vendor model expertise: Extensive experience with NICE Actimize, Verafin, QRM, ADCO, Moody's Analytics, and other major vendor solutions.

Model Governance & Audit

A strong governance framework is the foundation of any effective MRM program. We help institutions build frameworks that are proportionate to their size and complexity — not cookie-cutter templates that create unnecessary overhead.

Policy & Procedure

We develop governance policy tailored to your institution's size, scope, and regulatory environment. Practical frameworks that examiners respect.

Inventory Management

Model inventory taxonomy, risk tiering methodology, and lifecycle management strategy designed for sustainable compliance.

Audit Support

We help internal audit design and execute plans covering all aspects of MRM — from policy review to the soundness of individual validations.

Ongoing Monitoring

Implement monitoring programs that catch model drift and performance degradation before they become regulatory findings.

Our Validation Process

Scoping & Planning

We define scope, identify key risk areas, and align on regulatory expectations and timeline. No surprises for you or for examiners.

Conceptual Soundness Review

We evaluate theoretical foundations, methodology appropriateness, and model design decisions against industry standards and academic best practices.

Quantitative Testing

Rigorous back-testing, benchmarking, sensitivity analysis, and stress testing. We replicate results independently and challenge assumptions with alternative approaches.

Outcomes Assessment

We evaluate model performance against intended use, assess limitations, and quantify model risk. Clear findings with prioritized recommendations.

Reporting & Remediation Support

Exam-ready validation reports with executive summaries, detailed findings, and actionable remediation paths. We stay engaged through issue resolution.

Why Institutions Choose Us

10+ PhDs and senior quants on staff
20+ Model types validated
4 Continents served
SOC 2 Certified data controls

Our team members have held senior MRM roles at institutions including the Federal Reserve, Fannie Mae, Wells Fargo, Bank of America, Lloyds Banking Group, and Varo Bank. We bring regulator-side perspective and institution-side pragmatism to every engagement.

Need a validation or governance review?

We'll scope an engagement that fits your timeline, budget, and regulatory requirements.

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