Initiate a model risk assessment
Initiate a model risk assessment by verifying the details, assigning stakeholders, and create an assessment using the Model Risk Management application.
Before you begin
Role required: sn_model_risk_mgmt.model_governance or sn_model_risk_mgmt.risk_coordinator
Procedure
- Navigate to All > Model Risk Workspace.
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Select the list icon
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- From the list, navigate to Models > Initiation.
- Select the model.
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On the Details card, review and modify the field values copied from the model intake form.
Table 1. Details card Field Description Name Unique name of the model that reflects its purpose and functionality. The field value is auto-populated from the model intake form entry. You can edit the name as required. Description Brief summary explaining what the model does and how it functions. The field value is auto-populated from the model intake form entry. You can edit the description as required. Purpose Specific business objective or problem that the model is designed to address. The field value is auto-populated from the model intake form entry. You can edit the purpose as required. Active Option to indicate whether the model is in use. Model classification Identification of whether the item qualifies as a model or not. The options are as follows: - Model: Meets the criteria to be treated as a model.
- Non Model: Doesn’t meet the criteria for classification as a model.
Model type Classification of the model, such as statistical, machine learning, or rule-based. The options are as follows: - Statistical Model
- AI Model
Third party model Option to indicate whether the model has been obtained from an external vendor or service provider. Model category Internal classification based on the model’s use case. The options are as follows: - Retail: Models designed for individual customer products or services, such as personal loans, credit cards, or consumer risk assessment.
- Corporate: Models used for business or institutional clients, typically involving larger exposures or complex financial products.
Model complexity Estimated level of model complexity. The options are as follows: - Simple
- Moderate
- Complex
Input data Details about the data sources or datasets the model uses. Output data The result or prediction generated by the model based on input data. For example, Value at Risk (VaR) or projected cash flows. Attachments Option to attach any supporting files or documents. - Optional: To save the information entered in Details card, select the Save button next to the Mark as complete button.
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Select Mark as complete.
The Stakeholders stage in the Model Workflow playbook opens.
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Select Edit to define the Persona, Group, and Users.
Note:The Users field is auto-populated with the model owner and model developer defined in the model intake form. A user with the Model Risk Governance or Model Risk Coordinator roles can edit stakeholders at any point in the workflow.
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Select Mark as complete to move to the Assessment stage.
Note:If you update the model owner in the stakeholder list, the model record continues to display the name of the user who submitted the model request as Owner. However, all ongoing activities are assigned to the new model owner selected in the stakeholder list.
- Select Create assessment.
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On the Model Risk Assessment dialog, fill in the fields.
Table 2. Model Risk Assessment Field Description Assessment template Predefined template that outlines the structure, questions, and scoring logic for the assessment. This field is auto-populated with the default assessment template. Assessment assignee Individual assigned to complete the assessment task. This field is auto-populated with the model owner name. Due date Date by which the assessment task must be completed. -
Select Create.
A model risk task is created and assigned to the model owner.