Practice Guide: Auditing Model Risk Management

Short of a crystal ball, there is no fool-proof way to predict outcomes in the financial services industry. However, models provide a powerful tool to empower organizations to make important decisions using information from a variety of sources. The IIA’s Practice Guide: Auditing Model Risk Management helps ensure that these models are working as effectively as possible for an organization.

This practice guide* provides an overview of key areas related to model risk management including business significance, regulatory requirements and expectations, and model components. It is designed to help chief audit executives and their audit teams understand their roles in assessing model risk management and empower them to implement an audit plan coverage approach and program tailored to the size, scale, and risks facing their organization.

*Under Review: This practice guide contains some outdated material and references. It remains available while a review is underway.