Navigating the Complexity of Model Risk Management with SAS

[#1]

In today’s rapidly evolving financial landscape, model risk management (MRM) has become a cornerstone of responsible governance. With the AI, machine learning (ML), and generative AI (GenAI), financial institutions face increasing complexity in their modeling systems. SAS offers a comprehensive solution to help organizations manage this effectively.

The Expanding Scope of Model Risk

Modern models, especially those powered by AI, GenAI, and ML, offer unprecedented predictive power. However, they also introduce risks such as bias, opacity, and regulatory scrutiny. Financial institutions face challenges like:

• Fragmented governance across siloed model development environments.
• Lack of integrated systems to manage model metadata and documentation.
• Difficulty adapting to evolving regulatory requirements.

SAS’s End-to-End Model Risk Management Solution

SAS provides a comprehensive MRM solution that centralizes model governance and streamlines the entire model life cycle. Key capabilities of SAS Model Risk Management include:

Centralized Model Inventory

SAS enables institutions to establish a centralized repository for all models—regardless of type or technology. This inventory supports internal policies and includes:

• Permissions and version control.
• Metadata import (e.g., validation results, criticality ratings).
• Integration with third-party systems.

Robust Documentation & Tracking

Models are documented and tracked throughout their life cycle, with a single source of truth for:

• Model lineage and ownership.
• Validation and review processes.
• Business line associations and version history.

Select any image to see a larger version.
Mobile users: To view the images, select the "Full" version at the bottom of the page.

Insightful Risk Analysis

SAS empowers users to analyze thousands of data points—both quantitative and qualitative—to uncover model risk concentrations. Interactive dashboards and visualizations enhance institutional awareness and support board-level oversight.

Agile Governance Tools

SAS’s platform helps institutions stay ahead of changing risk policies and regulations by:

• Enforcing signoffs, legal reviews, and testing.
• Supporting flexible workflows for validation and change management.
• Providing enterprise-level oversight across all risk categories.

Comprehensive Feature Set

SAS Model Risk Management includes:

• Data governance & metadata management with integrated business glossaries and lineage visualization.
• Model usage tracking and change management capabilities.
• Dashboards for data exploration and reporting.
• Complete workflow management for any model type or source.

Industry Recognition

SAS was ranked #2 overall in the Chartis RiskTech100® 2025, winning six category awards including:

• AI for Banking
• Balance Sheet Risk Management
• Behavioral Modeling
• Enterprise Stress Testing
• IFRS 9
• Model Risk Management

Conclusion

As financial institutions navigate the complexities of modern modeling, SAS offers a powerful, integrated solution to manage model risk effectively. With centralized governance, automated monitoring, and deep insights, SAS helps organizations stay compliant, confident, and competitive in a rapidly changing regulatory landscape.

Find more articles from SAS Global Enablement and Learning here.