Protiviti’s Risk Analytics & Model Risk practice builds, validates, and audits quantitative risk assessment systems, while also assisting client management to understand the value and limitations of their models. The practice also covers Capital Management & Capital Adequacy services. The outcomes are better informed business decisions, improved operational control of the business, and alignment with regulatory requirements.
Protiviti’s independent, holistic, model validation process helps control model risk, prevents losses associated with such risk and enhances key stakeholders' understanding of analyses and decisions based on such models. Models are simplified and idealised representations of the real world and are prone to errors when built or applied incorrectly, hence the issue of Model Risk arises. We help organisations manage their portfolio of Model Risks by assessing, designing and implementing model governance programmes.