Model Risk Management as a Service (MRMaaS)

Model Risk Management as a Service (MRMaaS) is a novel offering where Yields manages model risk on your behalf. Our team of MRM and technology experts (sourced from within Yields and our partner ecosystem) will use the Yields MRM Suite to manage all aspects of your model risk management activities.

How does MRMaaS work?

The services are offered through a subscription model that includes software, advisory, and consulting.
To set up these services, we follow a well-established plan:

Maturity Assessment
During this exploratory phase, we review how you work, gather your requirements, and build a high-level understanding of your model landscape. We also create a detailed implementation plan that is presented at a steerco meeting.

Installation
In the installation phase, we set up the Yields platform, configure it in line with your organization’s structure, and provision the accounts.

Model validation BoW planning
In this phase, we onboard all your models onto the system, risk-tier them, and create a work plan for the coming year. The main deliverable is a detailed Book of Work (BoW) based on risk-based prioritization.

BAU
We implement the Book of Work and arrange regular meetings to ensure you remain updated.

A Comprehensive Yields MRM Software Solution

What does it include?

The MRM work plan consists of several key elements:

Addressing all MRM aspects throughout the model lifecycle. This includes supporting the procurement and upgrade of vendor models, assisting model developers in incorporating MRM best practices, informing model users, managing model modifications, and organizing approvals.

Risk-based validation: Both initial and periodic validations are scheduled based on a risk-based prioritization, which also considers any regulatory deadlines.

Issuing findings, creating action plans, and conducting follow-ups.

Periodically monitoring models and addressing any monitoring issues.

Communicating with all stakeholders, including senior management, audit, and regulators.

Creating necessary technical documentation as well as executive reporting, including compliance reports and risk appetite reports.

Periodically reviewing the accuracy of model inventory entries during the certification process.

A value-added service

As you do not need to set up an MRM team, your analytical talent can focus on building models that add value to your business.

Cost efficient

Our MRM experts are fast because we automate as much as possible using the Yields MRM Suite.

Best in Class Technology

You will gain access to Yields’ best-in-class MRM technologies, including a complete MRM system and validation service.

A Robust and Compliant MRM Framework

Leveraging our industry and regulatory experience, your MRM framework will be compliant, aligned with best practices, and will capture all material model risks.

Model Risk Expertise

You will benefit from our deep understanding across the model landscape, from AI tools to regulatory capital models, compliance models, and pricing models.

Scalable, Agile Delivery

As we leverage our partnership ecosystem, the size of our MRM expert team can scale up during periods when you need us most and reduce during quieter periods.

Financial service organizations that do not have a dedicated MRM team such as regional or specialized banks, building societies and credit unions.

FinTechs who are new to MRM.

AI teams who are looking to kickstart their AI and MRM compliance.