Michael Rasmussen from GRC 20/20 stated “Models are used across industries to analyze, predict, and represent performance and outcomes that impact operations and business strategy. By definition, a model is a mathematical approximation of scenarios that is used to analyze and forecast prices, events, risks, relationships, and future outcomes.”
And it all starts here…. what if an error occurs in some section of the data that is about to be input into the system? What if the equation, process, or workflow that is used is not adequate or is simply wrong? How will you identify this issue? Do you have the capabilities to trace it back? How do you ensure the capability, compliance and performance of your models? In short....How reliable is your data?
Michael Rasmussen adds “The expanding use of models in the organization reflects the extent to which models can improve business decisions, but models come with risks when internal errors or misuse results in bad decisions. Organizations need to provide a structured approach for model risk management that addresses model governance, lifecycle, and architecture to manage models and mitigate the risk they introduce while capitalizing on the significant value of models when properly used”.
MEGA is proud to announce that we received a GRC innovation award from GRC 20/20 for our solutions for model risk management. This award recognizes “a solution that shows something truly unique, game changing, revolutionary, and new”.
MEGA helps organizations to gain control and understand model risk through an ability to not only inventory, but to diagram how models are to function. Our solutions leverage enterprise architecture capabilities to capture business and enterprise knowledge (via business models), to capture model logic (modeling the models), and, above all, to put the models in their actual use case and business context.
MEGA’s ability to store object-to-object relationships facilitates leveraging object characteristics to perform risk assessment; creating a framework for planning.
Specifically, we provide an integrated view of models in their IT and business environments, which allows for:
Want to know more about model risk management and how we can help you to address these challenges? Download the full report.