ALM Model Verification : Which ALM Model Verification Report is Right for My Institution?

ALM Model Issues Comprehensive
ALM Model Verification		 Technical
ALM Model Verification		 ALM Model
Risk Assessment
Determine the forecast accuracy and regulatory compliance position of the model

Establish the level of model risk for regulatory compliance

Evaluate the model control environment against industry practice

Verify that the model is conceptually adequate for your institution’s needs

Confirm that the model can identify and model all contractually defined behaviors in the balance sheet

Prove that the technical details of the model (category setup specifications, data, contractual inputs, assumptions, reports) are input or defined properly

Determine that category-level behavior inputs are accurate and suitable for their specific applications

Validate model produced forecasts at the detailed category level

 
Establish that model IRR forecasts are validated to recent actual net interest
margin and value related results

   
Demonstrate that the model's IRR analysis methodology is adequate

Establish that all model governance related solutions (ALM processes, policies, and ALCO) are adequate

   
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Features in all MPS ALM Model Verification Reports:

  • Concise Executive Summary
  • Model Implementation Quality Rankings
  • Prioritized Recommendations
  • Technical Model Assessment
  • Validation of Model Forecasts
  • Industry Standard and Best Practices
  • Model Implementation Ranking