Managing Model Risk: How Optalitix Models Empowers Financial Institutions
Model risk presents a significant challenge for financial companies, especially insurers and banks. With the UK Financial Conduct Authority (FCA) tightening regulations on model management, the need for robust solutions has never been more pressing. One of the primary sources of model risk lies in spreadsheets and decentralised models, where untracked calculations and unauthorised use can lead to costly errors. Optalitix Models addresses these challenges with a powerful, centralised platform designed to enhance control, transparency, and compliance.
Centralised Model Management
Optalitix Models provides a unified, online platform where all models—whether spreadsheets or APIs—are stored and managed centrally. This ensures complete oversight of model usage across the organisation, eliminating the risk posed by isolated models and unapproved calculations. By consolidating model storage, companies can easily monitor every model in use, irrespective of the coding language.
Robust Version Control
Version control is a critical feature of Optalitix Models. Each model update is meticulously tracked, ensuring that organisations maintain a clear record of changes over time. This not only simplifies the audit process but also ensures accountability, as every alteration is logged and traceable. This level of oversight mitigates the risk of outdated or incorrect models being deployed.
Real-Time Monitoring and Auditing
The platform’s central monitoring capability allows for real-time oversight of all calculations. Errors can be identified and resolved swiftly, reducing the potential impact on business operations. Additionally, the ability to audit calculations ensures that companies meet regulatory requirements, providing confidence in the accuracy and reliability of their models.
Controlled Deployment and Authorisation
Optalitix Models enhances security by implementing strict controls over model deployment. Only authorised personnel can deploy models to production, and the process is streamlined with single-click functionality. This prevents unauthorised usage and ensures that only validated models are operational, reducing operational risk.
Testing for Continuous Improvement
Test sets within the platform enable companies to assess model changes before deployment. This ensures that updates deliver the expected outcomes, providing a safeguard against unintended consequences. By validating models against predefined benchmarks, companies can enhance performance while maintaining accuracy.
Conclusion
In an environment where model risk is under increased scrutiny, Optalitix Models offers a comprehensive solution for financial institutions. Its centralised platform, robust version control, real-time monitoring, and controlled deployment capabilities provide the tools needed to manage model risk effectively. For companies looking to stay compliant and competitive, Optalitix Models is a vital asset in the ongoing effort to mitigate risk and optimise model performance.
