Description
Course Outline:
1. Welcome and Objectives
- Brief introduction to the session and speaker
- What participants will gain:
- Understanding the auditor’s role in the model lifecycle
- Enhancing audit readiness and assurance on model risk
2. Introduction to Model Risk and Validation
- What are financial/credit/risk models?
- Regulatory expectations (e.g., Basel, SR 11-7, ECB TRIM)
- Why model validation is critical?
- Overview of Model Risk Management Framework (MRMF)
3. Where Audit Fits In: Roles and Responsibilities
- Distinction between validation and internal audit
- Internal audit’s “third line of defence” position
- Audit touchpoints across the model lifecycle:
- Model development governance
- Validation adequacy
- Change control, usage, and performance monitoring
- Audit as a challenger, not a validator
4. Audit Evaluation Scope
- Key areas to review:
-
- Oversight of model development process
- Model governance and policy adherence
- Independence and robustness of validation
- Assumptions, data quality, and model documentation
- Controls over model usage and performance tracking
- Change Management and Version Control
- Compliance and Regulatory Adherence
- Sample risk-based audit questions/checklists
5. Common Gaps Observed by Internal Audit
- Weak validation independence
- Lack of model inventory and risk tiering
- Poor documentation or unclear model ownership
- Ineffective model performance monitoring
- Lack of independent validation or technical challenge
- Unclear ownership or accountability across lines of defence
6. Best Practices for Internal Audit in Model Validation
- Collaborating with model risk teams, yet remaining independent
- Ensuring audit trail of decisions and governance
- Use of subject matter experts (SMEs) in audits
- Building audit capacity for quantitative reviews
7. Case Study
- Highlighting the evolving landscape of the three lines of defence
8. Q&A and Discussion
- Open floor for audit team questions
- Discussion of challenges faced in recent audits
Resource Speakers:
AMAN BHARDAJ
Director, APTIVAA
SHIVAM GAGODIA
Director, APTIVAA
ASHLEY CHERIAN
SME, APTIVAA
Schedule:
May 26, 2026 (Tuesday) 1:00 PM – 5:00 PM
Training Fee per Participant:
Member Institution – Php2,800.00
Non-Member Institution – Php3,920.00
*VAT inclusive