Specializing in asset/liability management and modeling for financial entities, FRC has the expertise and knowledge to prepare model validations as suggested in OCC Bulletin 2000-16 and FDIC article Model Governance, Winter 2005 Issue of Supervisory Insights. Whether you need a Parallel or Non-Parallel Validation, FRC can produce a regulatory compliant validation for you at a very attractive price.
Model validation is an important component of proper asset/liability management. An independent validation helps to ensure that well-grounded principles are used in formulating and evaluating risk positions, as well as forward balance sheet projections, through a complex cash-flow model. A model validation is achieved by structuring a detailed review of three major model components: logic, information input and information output.
Sound modeling practices suggest an independent model validation every two years.