Model Validation

Model ValidationSpecializing in asset/liability management and modeling for financial entities, FRC has the expertise and knowledge to prepare model validations as suggested in OCC Bulletin 2011-12, the "Interagency Advisory on Interest Rate Risk" (SR 10-1) and the "Joint Policy Statement on Interest Rate Risk" (SR 96-13). 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.