Model & Data Validation
Quantitative Model and Data Validation: ECL | CECL | Actuarial Modelling | Valuations | Stress Testing | More
Shasat’s model validation services embody the pinnacle of precision and reliability. We tailor these services for financial institutions across Europe. Moreover, our quantitative experts use a rigorous and structured methodology to ensure the accuracy, appropriateness, and regulatory compliance of financial models. Consequently, this meticulous process manages risks effectively and meets the stringent demands of regulatory bodies.
This includes Expected Credit Loss (ECL) models required by IFRS 9, Current Expected Credit Loss (CECL) models under US GAAP ASC 326, actuarial modelling as per IFRS 17, and stress testing models. Furthermore, Shasat’s expertise ensures financial institutions comply with evolving standards and gain confidence in their quantitative frameworks.
Comprehensive Model Validation Methodology
Scope Definition
We begin by defining the validation scope. First, our team outlines objectives, identifies relevant models, and maps out the regulatory criteria to meet.
Model Documentation Review
Our experts review model documentation exhaustively to verify its completeness. This assessment covers theoretical foundations, assumptions, data used, and limitations. As a result, it ensures the documentation supports the intended model purpose.
Independent Testing
We conduct independent testing to evaluate the mathematical integrity, algorithmic appropriateness, and implementation accuracy of the models. This process includes back-testing, sensitivity analysis, and stress testing. Thus, the models’ reliability is thoroughly confirmed.
Data Integrity Check
We assess the data’s quality and integrity thoroughly. Consequently, our approach ensures relevance, completeness, and accurate processing of all data.
Comparative Analysis
We compare model outputs with benchmarks or industry standards. This step validates performance and ensures reasonable results. Hence, clients receive models aligned with industry expectations.
Outcome Analysis
Additionally, we scrutinize the predictive power and decision-making utility of the model. This includes identifying and understanding deviations from expected outcomes. Therefore, the analysis ensures the models serve strategic purposes effectively.
Governance and Use Assessment
We evaluate the governance framework around model use. Specifically, this includes approval processes, user training, and the model’s role in strategic decisions. Consequently, institutions benefit from enhanced oversight.
Regulatory Compliance
Our validation adheres to European regulatory standards, including Basel, Solvency II, EBA, and ECB requirements. Accordingly, clients achieve full regulatory compliance.
Python-Based Model Validation
We provide specialized validation for Python-coded models to ensure their accuracy, efficiency, and compliance. This includes verifying algorithmic implementations, testing coding practices, and evaluating the use of Python libraries for modeling. Additionally, we ensure the models align with regulatory and institutional requirements.
Comprehensive Reporting
We prepare detailed validation reports summarizing the process, findings, and improvement recommendations. Each report includes an overall risk assessment. Ultimately, these reports support informed decision-making.
Recommendations and Remediation
We offer actionable advice for addressing issues and support remediation efforts. Thus, clients can efficiently implement required adjustments.
Ongoing Monitoring and Periodic Review
We establish regular reviews and continuous monitoring regimens to maintain performance and compliance. Consequently, models remain reliable and up-to-date.
Data Validation and Data Offering Services
Shasat provides specialized data validation and offering services. These services ensure accuracy and integrity in your data management processes. Additionally, our streamlined approach caters to the critical needs of data governance, compliance, and optimization for financial institutions.
Service Offering Highlights
- Rigorous Data Validation: We verify the accuracy, completeness, and consistency of your data. Specifically, our experts identify and rectify discrepancies to uphold quality.
- Enhanced Data Offering: Our services provide access to high-quality financial data, sourced from trusted providers. For example, these include market data, pricing information, and tailored datasets.
- Compliance Assurance: We align your data management practices with regulatory standards. Consequently, this mitigates risks and improves reporting capabilities.
- Strategic Data Insights: We offer insights to transform data into strategic assets. As a result, this supports informed decisions and competitive advantages.
- Continuous Monitoring and Updates: We maintain ongoing data monitoring and periodic updates to keep your data relevant and effective. Therefore, clients benefit from up-to-date data management.
Accounting and Regulatory Focus
Shasat’s model and data validation services support both IFRS and US GAAP accounting standards. They also meet regulatory requirements under Basel and Solvency II frameworks. Consequently, this dual focus ensures seamless alignment with financial reporting standards and regulatory mandates.
Our team understands these regulations’ nuances. Moreover, we provide tailored solutions that exceed the expectations of global financial oversight. With Shasat, your accounting and regulatory frameworks become robust, reliable, and ready for the future.
Contact Us
To enhance compliance and data integrity, contact us today. Accordingly, our dedicated team will connect promptly to discuss your needs and tailor a seamless process for your organization. Let Shasat enable your success with robust compliance and data solutions.