In today’s fast-paced business environment, managing risks effectively is crucial. SAS Viya offers a dynamic platform that transforms Model Risk Management (MRM) by making it more customizable and efficient. Imagine having the power to visualize complex data, make informed decisions with ease, modify out-of-the-box workflows, and configure the user interface. With applications like SAS Visual Analytics, SAS Model Risk Management, SAS Workflow Manager, and SAS Cirrus Builder, SAS Viya empowers organizations to tailor their MRM processes to meet specific needs, ensuring compliance and enhancing decision-making. This blog will delve into how these tools can help your organization stay ahead of the game of risk management.     Let’s begin by exploring SAS Risk Cirrus and Cirrus Builder.     SAS Risk Cirrus is a cloud-native platform that makes managing risk solutions a breeze, all while requiring minimal code editing. Fully integrated with SAS Viya, it includes Cirrus Builder, a handy microservice for managing the solution life cycle and web applications. With Cirrus Builder, you can configure and customize risk solutions, integrating seamlessly with Cirrus Objects like analysis data, runs, cycles, and models. Each SAS Risk Cirrus solution comes with its own set of default configuration properties, allowing you to enable or disable objects and features, hide or display fields, and set default values. MRM users may appreciate the ability to customize pages, menus, and interactions to fit their needs in SAS Model Risk Management.   Here are some common examples of customization/configuration within SAS MRM: Populating value of one field based on the selection of another field (e.g. dropdown) Calculating a value of one field based on the selection of two fields (in questionnaires) Making field required based on the selection of another field’s value Making field visible based on the selection of another field’s value Making field read-only based on the workflow status   Select any image to see a larger version. Mobile users: To view the images, select the "Full" version at the bottom of the page.     SAS Model Risk Management is a user-friendly, web-based solution that enables you to perform model governance activities. It facilitates the capture and management of model-related information and supports model governance throughout the entire model risk management life cycle, from model creation to retirement. The out-of-the-box workflow within SAS MRM can be configured to meet your organization’s needs, and this customization can be achieved using SAS Workflow Manager.       SAS Workflow Manager is a key tool for customizing and streamlining Model Risk Management processes. It allows you to design and automate workflows that fit your specific needs. With SAS Workflow Manager, you can easily create, edit, and manage workflow steps, ensuring that each part of the MRM process is tailored to your organization. The platform supports various tasks and processes, making sure everything flows smoothly. You can set up approval steps, notifications, and data checks to enhance the efficiency and accuracy of your risk management activities. By using SAS Workflow Manager, you can ensure your MRM processes are not only compliant with regulations but also optimized for better performance and adaptability.       SAS Visual Analytics is another fantastic tool used in the configuration and customization of SAS MRM because it makes data visualization and reporting much easier. Integrated into SAS Model Risk Management, it allows senior management to view detailed dashboard reports of all models in the inventory through the Board Report. With its interactive features, SAS Visual Analytics helps users explore data, uncover insights, and make informed decisions. This tool simplifies complex data, making it easy to understand and share insights across the organization, ensuring everyone is aligned on risk management strategies.       Lastly, there’s SAS Environment Manager (SAS EV). SAS EV is the place where administrators or super users can administer, monitor, and manage SAS resources. It allows for monitoring log events and reporting alerts, creating custom groups and assigning users to those groups, scheduling and monitoring jobs to update the SAS MRM Board Report, viewing stored data, and collecting and charting data on metrics for monitored SAS resources. This comprehensive tool ensures that your SAS environment runs smoothly and efficiently.       In conclusion, SAS Viya provides a range of versatile tools that enhance the customization and efficiency of Model Risk Management. With applications such as SAS Visual Analytics, SAS Model Risk Management, SAS Workflow Manager, and SAS Cirrus Builder, organizations can adapt their risk management processes to better suit their unique needs. These tools simplify data visualization, streamline workflows, and ensure regulatory compliance, making risk management more effective. By utilizing SAS Viya, your organization can stay proactive in managing risks, making well-informed decisions, and achieving business success.   For more information on these products, please refer to their documentation and product landing pages. Find more articles from SAS Global Enablement and Learning here. ... View more

Model Risk Management (MRM) is important for identifying, mitigating, and managing risks associated with models. Commonly addressed risks include implementation errors, incomplete or corrupt data, and inaccuracies in model inventories. MRM ensures comprehensive oversight of model risk throughout the entire model life cycle, adhering to both internal policies and external regulatory guidelines. Each stage in the model life cycle has specific users assigned to it, ensuring that access is appropriately restricted and not all users have access to everything. This role-based access is crucial for maintaining security and protecting sensitive information. In this blog, we will explore SAS Model Risk Management, showcasing how it balances robust security with operational efficiency by effectively managing classifications, dimensions, scope, roles, users, and security within the user interface.   SAS Model Risk Management, or SAS MRM on Viya is a model governance solution that follows a model throughout its entire life cycle. Its life cycle, for many cases, goes as follow:     Model lifecycle phases and roles: Create (Model owners & stakeholders), Development (model developers, owners, and stakeholders), Validation (model risk management group), Deployment (model developers, owners, and users) Production (model developers, owners, and users), and Retirement (model owners and users).     Within each phase of the model lifecycle are roles that need to be filled by your organization. These roles are crucial for ensuring that each phase is executed effectively by each model owner, stakeholder, model developer, and model user to make sure they are in compliance with regulatory standards. Each of these roles come with specific responsibilities that contribute to the overall success and integrity of the model lifecycle. By clearly defining these roles early on, organizations can ensure accountability and help identify potential risks early. This structured approach not only enhances model performance but also aligns with best practices in model risk management.    Best Practices for Access Control in SAS MRM   There are two general ways that SAS MRM uses best practices to ensure secure and efficient access control. One way is through role-based access control or (RBAC). RBAC assigns permissions based on user roles within an organization, adding flexibility and the ability to support diverse roles and hierarchies, making it ideal for complex settings. For example, a model owner might have access to tools and environments necessary for creating and testing models, such as development servers and code repositories, while model users, like analysts may have access to the finalized models and the data generated by them. Each group can access the resources they need for their specific roles, without compromising security or efficiency.   Another way to maintain data integrity and confidentiality is by implementing positional security. This allows organizations to restrict access based on specific job positions within their organizational structure. For that added security, SAS MRM also offers positional security. The objects in the UI use positional security to stay aligned with MRM best practices. (Objects are just components that the solution uses to describe different functionalities and pages in the user interface.) Positional security takes a user or group and assigns them to these objects. In other words, users and groups will have capabilities scoped to specific positions per object. For instance, one user might only have permission to read and update the Model object within Company A, while another user might have similar permissions within Company B.   Role based access control and Positional security ensure only authorized users can access sensitive data which enhances security and compliance. It also adapts to organizational changes, supporting growth and simplifying audits. These approaches provide detailed control over data access based on job roles and organizational hierarchy.   Implementing Access Control   Implementing these access control methods in SAS MRM involves five key steps to ensure both security and operational efficiency are maintained for your organization. 1. Define Roles and Positions 2. Assign Permissions 3. Set Up Positional Security 4. Configure Classifications and Scope 5. Conduct Regular Audits and Reviews     To illustrate these five steps, let's use a financial institution, like Quantum Bancorp, as an example. Let's say that within the Retail Banking sector for Quantum Bancorp, they want to implement robust security measures to protect sensitive customer data.     1. Define Roles and Positions   The first is to clearly define the roles and positions within your organization by identifying the specific responsibilities and access needs for each role and position.   Example: At Quantum Bancorp, roles within the Retail Banking sector include “Model Developer” and “Model User.” Model Developers are responsible for creating and testing financial models related to retail banking products, while Model Users analyze the data generated by these models.   2. Assign Permissions   Secondly, clearly define what each role needs to access.  For instance: Model Developers: Need access to development servers, code repositories, and testing environments to create and test financial models. Model Users: Require access to finalized models and the data they generate for analysis, but not to the development tools or raw code. Analysts: May need access to specific data sets and reporting tools to perform their analyses. Managers: Might require access to a broader range of data and reports to oversee operations and make strategic decisions. Example: Quantum Bancorp grants the following permissions to each role: Model Developers: Granted permissions to create, edit, and delete models. Model Users: Granted permissions to view and analyze models, but not to modify them. Analysts: Granted permissions to access specific data sets and generate reports. Managers: Granted permissions to access comprehensive data and high-level reports.   3. Set Up Positional Security   Implement positional security by assigning access based on job positions. This involves mapping users and groups to specific objects within the SAS MRM interface, ensuring they only have access to the data and functionalities relevant to their positions.   Example: Within the Retail Banking sector, an analyst focusing on personal loans can only access models and data related to personal loans. Similarly, an analyst focusing on mortgages can only access mortgage-related models and data.   4. Configure Classifications and Scope   In SAS Model Risk Management are settings that allow your organization to further refine access control. These settings are called classifications, dimensions, and scope within the user interface. They help in managing who can view or edit specific data. Each high-level category that you specify for a business object is called a dimension or a classification type. Classification types are hierarchical constructs that can have multiple levels. By default, all SAS MRM objects that use a workflow will require users to pick classifications before they can select Team members. Examples of classification types include entity, business line, model family, and geography.   Example: Sensitive financial models related to high-value loans are classified to restrict access to senior analysts and managers only. General financial reports on retail banking performance are accessible to all employees within the Retail Banking sector.   ----- Classifications for a Specific Model Object ---- Dimensions: Business Lines: Quantum Bancorp > Retail Banking Geography: United States Model families: Stress Testing > Credit > Retail Scope: User (Christine) or Group (Risk Managers)   This classification ensures that sensitive data is only accessible to this specific group.   5. Perform Regular Audits and Reviews   Conduct regular audits and reviews of access controls to ensure they remain aligned with organizational changes and compliance requirements. This helps in identifying and addressing any potential security gaps.   Example: Quantum Bancorp conducts quarterly audits to review access permissions within the Retail Banking sector. During these audits, they ensure that only current employees have access to necessary systems and data and remove access for those who have changed roles or left the organization. Implementing these access control methods in SAS MRM is crucial for maintaining both security and operational efficiency within your organization. By defining roles and positions, assigning appropriate permissions, setting up positional security, configuring classifications and scope, and conducting regular audits and reviews, organizations like Quantum Bancorp can ensure that sensitive data is protected and accessible only to those who need it. This structured approach not only safeguards critical information but also enhances the overall workflow and compliance with regulatory standards.   For more information on access control within SAS Model Risk Management, please refer to the documentation labeled Implement Access Control in the Administrator's Guide.   To remember:   Here are some questions to keep in mind when you are setting up user access for a given object instance: Who wants access? Create groups and assign users to the groups. What business objects are users allowed to access? Configure permissions and assign roles. What classifications within the business object are users allowed to access? Assign a scope that is based on the classifications that you specify for the organization.    Conclusion   In conclusion, SAS Model Risk Management is a powerful software that helps organizations manage the risks associated with their models. It ensures that models are created, tested, and used safely and effectively throughout the entire model lifecycle. By using role-based access control and positional security, only the right people can access sensitive information, which keeps the data secure and compliant with regulations. This organized approach not only makes operations more efficient but also ensures that models meet regulatory standards. Regular checks and updates help maintain the system’s integrity and adapt to any changes.   For more information on SAS Model Risk Management, click here. To view more blogs about SAS Model Risk Management, click here. ... View more

As businesses and individuals seek efficiency, productivity, and all-around simplicity, the demand for easy-to-use software is more prevalent. In this post, we will explore the many important features of SAS Model Risk Management and how it exemplifies innovative excellence in the Risk Industry.   SAS Model Risk Management (SAS MRM) is a software solution that helps identify, monitor, and manage model risk in financial institutions, ensuring robust internal controls and effective governance. In other words, it helps enforce all risk policy and regulations. With SAS Model Risk Management, you can better mitigate risk by gaining greater insight into model risk concentrations, keeping up with changing risk policies and regulations, centralizing model information management, and documenting and tracking the model throughout the life cycle.     User-Friendly & Customizable   Out-of-the-box Templates   The SAS Model Risk Management user interface stands out for its user-friendly design, which caters to both tech-savvy individuals and those with minimal coding experience. Its intuitive drag-and-drop functionality (Risk Cirrus Builder) allows users to customize SAS Model Risk Management to fit their business needs. Moreover, SAS Model Risk Management comes equipped with a variety of pre-built workflow templates that serve as a starting point for various projects, making it accessible for users of all skill levels. Some of the business objects with out-of-the-box (OOTB) workflow templates includes:   Action Plans (NEW) Models Model Reviews Model Attestations Inventory Attestations & more.   Block UI Builder   SAS Risk Cirrus Builder allows its users to drag and drop components to customize pages, objects, edit menus, enable/disable page configurations, and manage how pages and objects interact with each other. These are called Interactions.     Interactions within SAS Risk Cirrus Builder are scripts used to control how the user interacts with the solution and how different components interact with each other. It also allows the use of JavaScript (Script Editor) libraries and functions in a user-friendly way, providing access to additional SAS MRM functionality. SAS MRM on Viya ships with many OOTB interaction. Some examples of use cases for Interactions include:   Set and loading menus. Setting the visibility of a field based on a selected value of a drop down. Validating text entered by the user into a text box. Retrieving the value of a custom property. Calling a function to retrieve a user’s email, name, current date, etc. Setting which fields are visible or mandatory when a page loads. & many more.   These are just some of the ways you can use SAS Risk Cirrus Builder Interactions to fit the solution to your business needs. Interactions can be created and edited through a sequence of logical steps (Interactions Editor) or through the Script Editor in SAS Risk Cirrus Builder.   Note: Complex customizations can complicate maintenance, support, and merging with new releases. So, if you do make customizations, keep it as simple as possible, document it thoroughly, or consider raising a feature request.   This is an example of how Interactions are used to calculate the overall materiality score for a Materiality Assessment Questionnaire.       Dashboard & Trend Reports   Similarly, to UI customization, there are customizations you can make to the Dashboard and Trend reports in the SAS Model Risk Management solution. SAS MRM automatically deploys a reporting (CAS) library and an OOTB SAS Visual Analytics report that users can use to create dynamic visual reports about the state of their model inventory. To view these reports, you must be a member of the MRM: Report Viewers group or the SASAdministrators group and data must be loaded into the report. The report layout can also be configured in Risk Cirrus Builder using the Layout Properties.   The Dashboard Report provides a visual representation of all your model inventory data from Models in Production to Materiality by Geography to Findings by Severity, and so on. There is a lot you can do to fit the OOTB Dashboard report to your business needs. The Trend Report addresses the ability to see trends in certain areas of SAS Model Risk Management as well as trends over time of results from various assessments and approved risk rating. This can be done through SAS Visual Analytics. It comes with SAS Model Risk Management along with SAS Environment Manager, SAS Workflow Manager, and SAS Cirrus Builder.       Workflow Templates   As mentioned earlier, there are many pre-built templates for various object workflows. SAS Workflow Manager provides the tools to rapidly integrate fundamental workflow management into your business operations and offerings. Some popular workflow features within SAS MRM include systematic routing of tasks requiring manual intervention and automated triggering of basic actions and alerts. Workflow notifications can be set up to alert users of different tasks in the workflow, such as when a model has been created, when the Model Risk Management Group (MRMG) has approved an object, etc.       Automation   Model Attestations   In SAS MRM, Model Attestations is the model governance process through which model risk personnel ensure that the firm’s model inventory is complete and accurate. This should be completed once a year and considers the entire model inventory. This is accomplished by asking Model owners and Model attestation sponsors of the status of the current models in the inventory, if any current models have had any changed materiality, or if new models have been added to the inventory since the last attestation. A script can be run in the Inventory Attestation object to create Model Attestations for each model that is for a particular classification. This can also be done manually, but if you have a model inventory of 1000 models, manual model attestation creation can be tedious.   Model Performance Reviews + Automated Findings Generation   Model Reviews are the central piece of model performance monitoring in SAS Model Risk Management. This object can be used to perform annual reviews, full scope validations, model performance reviews, and other reviews of models. During the Model Performance Reviews workflow, the model developers will get back testing results from an external source and attach that file into Performance Assessment tab. The results can come from any source, but they must be provided in a specific format. Currently, SAS MRM does not execute backtesting results; it only evaluates those results against KPI thresholds defined in a Monitoring Plan. This will give modeling team members a summary of the results and tell them how many Findings, if any, will be created. (Note: Findings are issues noticed during a model review, validation, or at any time that present weaknesses or shortcomings in the model.) Findings are automatically generated from any KPIs that breached a threshold.     Artificial Intelligence   AI Governance   Artificial Intelligence (AI) is rapidly changing the formalities of how model risk management is being integrated into banking. There are challenges of course, such as bias, security concerns, and transparency that must be addressed. SAS Model risk Management establishes consistent standards for all AI initiatives by bringing together multiple risk disciplines. It clearly defines ownership and AI accountabilities across stakeholder groups and establishes mechanisms for centralized reporting and issue remediation. Plus, SAS MRM differentiates AI governance needs based on usage & risk. As AI and technology changes, SAS Model Risk management will continue to continue to evolve and adapt to the latest regulatory changes to meet all your business needs.       Linkage to various SAS products   SAS Model Risk Management can link to many other SAS products:   SAS Risk Modeling – helps to develop, validate, deploy, and track risk models in-house. It has data management, data mining, machine learning, and reporting capabilities.   SAS Model Manager – allows you to unify model assets, validate, and deploy models, monitor, detect, and alert those models, and streamline MLOps processes.   SAS Visual Analytics – allows you to create and share interactive reports and dashboards and use self-service analytics to quickly assess probable outcomes for smarter, more data-driven decisions.   SAS Information Catalog - used as the repository of metadata, including information on entities, attributes, relationships, and domains. It enables you to discover and document how data fits together, plus it provides a common vocabulary around data.     In conclusion, SAS Model Risk Management stands out as a powerhouse in the realm of model governance. With its commitment to continuous enhancement and adaptation, it consistently evolves to meet the dynamic needs of its users. The platform offers a highly customizable interface, out-of-the-box automation that simplifies complex tasks, and the ability to define AI/ML models with a few clicks, making it an indispensable tool for effective model management.   For more information on the newest release of SAS Model Risk Management, please refer to the What's New section of the documentation.   For more information on SAS Model Risk Management, click here. Find more articles from SAS Global Enablement and Learning here. ... View more

There are many business objects within SAS Model Risk Management (SAS MRM) that are consistent across solutions, such as Models, Data Load, Workflow Templates, and so on. These business objects are a key component of the SAS solution system because they represent various tasks within the system. The purpose of this post is to explore some of the various objects within SAS Model Risk Management and their interaction with each other.   Select any image to see a larger version. Mobile users: To view the images, select the "Full" version at the bottom of the page.   Since there are more than 15 business objects within SAS Model Risk Management, I think it would be best to break each object into 6 categories:   Main   There is not a specific name for these on a broader scale in the user interface, but they are very important for navigating. The first is the Home page, then the Global Search page, and lastly the Dashboard page which is integrated with SAS Visual Analytics.   Fortunately, this solution provides an easy way to view all of your data within each object page using tables. Each table can be customized by column (filtered and sorted), and each table view can be saved.   Model Development   This category is where you will find the process for helping to ensure that models are accurate, effective, and compliant with regulatory requirements. Each page has its own workflow process associated with it. Models - This page is where you will manage all of your models. It will provide a table of all the models loaded into your inventory. Here you will find the Model ID, Model name, Model status, Materiality assessment, and date created. These are the default columns, but there are plenty more you can add to your table such as Retired by, Vendor, Model version, Primary contact, Peer review, etc. Change Requests - This page is where you can view when models have modifications or changes needed. Here you can create the change request, analyze it, plan the changes, make the changes, and submit and finalize the request. Non-Models - This page holds tools or processes that do not meet the criteria of a model but are still useful and necessary for an organization. Some examples could be business rules, simple calculations, or key model assumptions and limitations. Model Reviews - This page includes comprehensive evaluations of a model to ensure its accuracy and effectiveness. Some model reviews include Full Scope Validation, this is typically for new models, Model Performance Reviews, Annual Reviews, and Other. Findings - This page is where you will find the results of model reviews or validations. They represent issues or concerns identified during the review process that still need to be addressed.     Model Monitoring   Model monitoring is a crucial part of SAS MRM.  It's important for performance tracking, providing alerts when a model's performance deviates from the set thresholds, centralizes model data storage, and with the integration of SAS Visual Analytics, it provides a clear and detailed view of how the models are performing using KPIs and Monitoring Plans. KPIs provide a way to measure model performance against business objectives, while the Model Monitoring page provides a centralized location for tracking and managing model performance, alerting users to any deviations from expected performance. You can upload your KPIs using the data loader page and export monitoring plans within the solution. Assessments   Candidate Assessments: These are preliminary evaluations that help determine what counts as a model or non-model. Model Attestations: This is a process where model owners and the model risk management group sign off on the accuracy and integrity of models. This multi-tiered process involves an overall inventory attestation, which consists of many model attestations with results that aggregate upward. The attestation process is a crucial part of maintaining regular oversight over any models under management. Inventory Attestations: This is a process to confirm the accuracy and completeness of the model inventory.   Model Risk Assessments aren't a business object by its own, but it's an important assessment to be aware of because it's used to evaluate the inherent risk of a model based on factors such as model usage, model criticality, and model materiality. The assessments help determine the model's risk tier, with Tier 1 risks being the most material and critical, and Tier 4 risks being non-material.   Configuration   This category helps to streamline and automate processes, ensure consistency and accuracy, and provide a structured approach to model risk management. Forms - These are user interfaces that allow users to input and view data. They are used to capture and display information about various business objects such as models, findings, change requests, and more. They are customizable and can be tailored to meet the specific needs of an organization. Some examples of forms include Validation Assessment used for Model Reviews, Candidate Assessment used for Models and Non-Models, Materiality Assessment used for Models, and the Change request checklist. Scripts - These are pieces of code that automate certain tasks within the system. They can be used to automate processes such as data validation, calculation of metrics, generation of reports, and more. Scripts help to increase efficiency and reduce the possibility of human error. Workflow Templates - These are predefined processes that guide the progression of tasks associated with various business objects through their lifecycle. Workflow templates in SAS Model Risk Management include processes for model validation, change management, model usage tracking, and more. They ensure that all necessary steps are followed in the correct order, and they can be customized to fit the specific processes of an organization. This is done through SAS Workflow Manager. Settings Data Load - This page facilitates the integration and distribution of model-related knowledge. It allows data to be easily loaded from external systems, pre-existing databases, or directly through the user interface. This data persists in a transactional system, making it available for reporting and analysis. The data load function supports the collection and management of various types of data, including model candidate assessment data, model inventory data, model review data, findings-related information, and operational documents. Position Management - This page is where the administrator can view roles, groups, and users. They can be updated here as well. Some group examples are MRM Administrators, Model Owners, Report Viewers, Model Users, Auditors, and so on. You can also view the Scope of each group and user. This allows for extra security within classifications and dimensions so specific users or groups aren't able to view other classifications' capabilities. For example, if your organization is using models in multiple countries, but you do not want everyone from those countries to have permissions, you can specify which groups and users can view them. In summary, it's important to understand the business objects within SAS Model Risk Management and their functions and how they interact with one another. SAS MRM allows for customizable configuration and an easy-to-use user interface. For more information about each of the business objects, please review the documentation within your solution.   How to access the documentation: Login to SAS Model Risk Management. Click the profile icon in the top right corner of the solution. Click the Help Center link. This will open up a new tab to the documentation. Expand the User's Guide (Or search for a specific object using the Search icon.) View the latest versions of the documentation  ... View more

As briefly mentioned in Part One of this series, the CECL cycle encompasses all the planning activities that are completed within the solution. These activities include data preparation, quality reviews, and data adjustments. The purpose of this blog is to inform you of the many useful business objects within SAS Risk Stratum and their capabilities. SAS Risk Stratum requires some very important ingredients – business objects and utilities – that you use within the SAS Solution for CECL content package. Cycles, Workflows, Rule Sets, Models, Analysis Data, Analysis Runs, Master Risk Scenarios and Action Plans are examples of various business objects that can be configured to meet your specific CECL business requirements.   risk stratum homepage A cycle can link several related business objects, which can be launched from within the Cycle object or created on the respective business object’s inventory page.    Cycle A cycle is a workflow-enabled object that encapsulates an end-to-end flow of a business process in each domain. A typical business process might involve various facets of data management, iterative analytical computations on that data, augmented with one or more iterations of adjustments, interspersed with appropriate review/approval stages.   risk stratum cycle   Workflow A workflow consists of the many elements that you include in a workflow template (for example, tasks, statuses, decision gateways, policies, and so on). Workflow objects can be associated with an arbitrary number of sub flows (which are also considered workflow objects). These objects can be broken down recursively into other sub flows. Workflow objects are slightly different than the other business objects outlined. Although workflow objects are included in the database schema, you cannot create workflow in the SAS Risk Stratum UI; you can only view them. You can create, customize and implement your own workflows to meet your business needs using SAS Workflow Studio.     Rules Sets The Rule Sets object is a collection of condition-based rules and optional action-based rules. Rule sets are applied to analysis data to define, configure, and manipulate the data to find potential data quality errors and to transform the data to mitigate those errors. Here are the two primary ways in which SAS Solution for CECL uses rules: Data quality checking: The solution evaluates the quality of the data using rules and generates data quality reports that can be reviewed for issues that have been identified. Data adjustment: The solution enables you to make manual adjustments to data using rules.   The Rule Sets business object in SAS Solution for CECL is used for grouping these rules.   Here are the four types of rule sets that are supported: Business rule sets: Used for checking data quality and performing data transformation task. Allocation rule sets: Used to define rules for allocating overlays and manual adjustments to detail data. Q-Factor rule sets: Used to define qualitative adjustments to be applied to detail data. Classification rule sets: Used to set the values of classification fields based on other fields in the data set.   risk stratum rule sets   Models The model object in SAS Risk Stratum can be defined as a script that is executed when the model is run and is not to be confused with a statistical model (such as a SAS code model or an ECL Model created in SAS Model Implementation Platform). SAS Risk Stratum models can be used for different purposes, including initializing data, preparing data, managing credit risk, conducting stress tests, and calculating exposures. SAS Risk Stratum models can also be used to run statistical models. In SAS Risk Stratum, models are used as the foundational blocks for executing a workflow. SAS Risk Stratum models refers to the specific Models business object in the solution, and not only to statistical models. Models in SAS Solution Content for CECL can be SAS scripts (for example, a script that loads data into the solution, a script that executes data quality checks) or can reference SAS Model Implementation Platform modeling systems that contain statistical models such as a Probability of Default (PD) model.   risk stratum models   Analysis Data Analysis data is a data set that could be an input to an analytic computation, or an output from an analytic computation. Some typical examples include portfolio data, cashflow data, counterparty data, economic scenario data, yield curves, interest rate curves, actuarial cashflows, computed risk measures at loan level or portfolio level and so on.   Analysis Runs The Analysis Runs object is a semantically meaningful encapsulation of a single analytic computation and can be defined as a periodic execution or ad hoc analysis of a particular model for a given cycle. Such a computation might involve execution of one or more statistical models and an ad hoc script coded in SAS, SAS Model Implementation Platform, Python, or another supported programming language. This computation could be broken up into sub-computations designed to be run in parallel or sequentially as the situation warrants. An analysis run is explicitly linked to relevant input and output Analysis Data objects. These runs typically happen from within a cycle, and you would review the results of the runs from within the cycle where the analysis run was completed. risk stratum analysis runs   In SAS Risk Stratum, we have explored a versatile tool that empowers businesses to mitigate and navigate risk effectively. With its user-friendly interface and robust features, it streamlines risk assessment compliance, and reporting processes. By centralizing risk data and offering intuitive dashboards, SAS Risk Stratum equips organizations to proactively address vulnerabilities and seize opportunities while meeting the proper CECL requirements. Check out the SAS Risk Stratum Support & Documentation page for more information.     ... View more

The purpose of this post is to introduce SAS Allowance for Credit Loss on SAS Viya and compare it to the SAS Expected Credit Loss solution. SAS Allowance for Credit Loss is an ​integrated risk management solution that enables you to address the requirements of the Current Expected Credit Loss (CECL) and International Financial Reporting Standards 9 (IFRS 9) regulations and business challenges that are related to calculation of the expected credit loss of your organization.​   SAS Allowance for Credit Loss enables you to support the following actions:​   Prepares data for risk calculations​ Performs risk calculations​ Performs attribution analysis​ Uses various workflows Provides a purpose-built, role-specific ​user experience   Out with the old...   The older version used to solve CECL challenges is called SAS Expected Credit Loss. Some of its features include:   Enabling framework to support ECL & IFRS 9 accounting standards for more efficient model execution​. Data preparation with DQ and segmentation​ ECL model templates – ECL curves model and ECL state transition matrix (STM) model​ Stage allocations for IFRS 9​ Data visualizations​ Modeling capabilities​ Batch processing​ Attribution analysis   In with the new...   Although SAS Expected Credit Loss offers many capabilities, it does not compare to the long list of functionalities that SAS Allowance for Credit Loss offers:   Includes all SAS Expected Credit Loss features​ More modern user interface Full support for CECL and IFRS 9 accounting standards including workflows, modeling, and reporting​ Workflows to support recurring production accounting runs and cycles​ Sample, configurable rulesets for DQ, classification, and post-model adjustments (Q- Factor, adjustments and allocation)​ Sample, configurable reporting dashboards and disclosure reports​ Accounting Postings Preparation​ Attribution Analysis including adjustments, individual assessments, and recoveries​   The Workflow   The primary feature of SAS Allowance for Credit Loss, the workflow, supports user analysis, centralizes access to data, models, and scenarios for a specific time period. Below is a screen capture of what the workflow looks like within the solution:   Select any image to see a larger version. Mobile users: To view the images, select the "Full" version at the bottom of the page.   A cycle represents the expected credit loss activities that are conducted for a given time period under a specific set of risk scenarios. A cycle is generally created by a solution administrator and the cycle's associated workflow is started by the responsible party that claims the initial task.   SAS Allowance for Credit Loss, the latest and greatest version of the CECL solution, offers an upgraded workflow process, prebuilt rule sets and templates, and it's customizable which enables the user to fit the solution to their specific business and organizational needs. Users can appreciate its simplicity and enhanced capabilities, making the execution of tasks within the workflow process smoother and more efficient. The improved user interface is friendlier and requires little to no-code to function. In summary, this solution update brings fresh, extended functionality, cutting-edge technology, and full support to businesses with their CECL/IFRS 9 standard help.   To request a demo to start exploring SAS Allowance for Credit Loss, click here.     Find more articles from SAS Global Enablement and Learning here. ... View more

The purpose of this post is to provide a high-level overview of the SAS Risk Stratum platform and some of its moving parts. SAS Risk Stratum is an integrated risk management platform, on which several SAS risk solutions run, and it provides a purpose-built, role-specific user experience with a single source of truth for each of these solutions.   Some of these solutions include,   SAS Asset Liability and Management, which employs cash flow projection and valuation methods for managing risk.   SAS Solutions for IFRS9 & IFRS17 protects investments in actuarial or accounting by enabling the user to meet all the IFRS9 & IFRS17 requirements.   More specifically, SAS Risk Stratum addresses the regulatory requirements and business challenges related to the calculation of Current Expected Credit Loss (CECL) by integrating a set of powerful analytics for process management.   These requirements are met with the help of robust data quality validation, a holistic view of balance sheets and income statements, statistical modeling, workflow templates, and disclosure reporting.   It is important to note that as a part of the SAS Risk Stratum installation, many key Stratum products such as the solutions mentioned previously use the same user interface (UI). The navigational and interaction experience is similar for business users across all solutions. In short, users that are familiar with one solution can easily transfer their knowledge to another SAS Risk Stratum solution with very little ramp-up time.   This also means business objects are consistent across the solutions. Analysis Data, Model, Analysis Runs, Risk Scenarios, and Workflow Templates are a few of the business objects we will discuss later. By utilizing the pre-built content and business objects for SAS Risk Stratum, the CECL content package can support the business process of:   Data Staging – uses data models for input and results and uses data quality rules.   Quantification – includes a powerful model implementation platform, prebuilt model constructs, and UI driven management & execution.   Review and Challenge – contains intuitive dashboards with automatic attribution analysis, a streamlined workflow, and is fully auditable.   Reporting – maintains prebuilt management reports with customizable allocation & aggregations.   Within each SAS Solution content package for CECL also includes a prescribed workflow for end users to support their CECL analysis. The CECL planning workflow typically involves multiple groups across and institution that coordinate planning and analysis activity for different types of risk or aggregates data from those groups for regulatory submission and internal use.   Select any image to see a larger version. Mobile users: To view the images, select the "Full" version at the bottom of the page.   At a high level, these are the following steps for a workflow:   Data Processing  Initializing the CECL cycle Load data   Configure  Master Risk Scenarios Attribution Templates   Credit Risk Analysis  Model Execution Model Simulation   Reviewing Results  Review CECL Analysis Apply Adjustments   Reporting  Generate Disclosures Attribution Analysis   A planning workflow contains tasks that are largely automated (for example, running a model) as well as manual tasks (for example, review and sign-off). Steps in the process flow are the responsibility by specific business users. The user will need to consider the roles and capabilities for each business user --- Data Analyst, Quantitative Analyst, Manager, or Risk Analyst. The role assigned to each user will determine which steps the user can execute, and which functions are available.   Since we have delved into the functionality of SAS Risk Stratum at a high-level, we can now shift our focus to the objects that each user role will interact with in Part Two of this series.   [END OF PART ONE]    For more information and documentation, please refer to the SAS Risk Stratum Documentation page by clicking here. "The documentation for SAS Risk Stratum is intended for use by existing customers and requires an access key. You can obtain the access key from your SAS consultant or by contacting SAS Technical Support. To expedite your request, please include SAS Risk Stratum in the subject field of the form. Be sure to provide the SAS Site Number for your software license along with your request." - SAS Risk Stratum Support     Note: Part Two will be a continuation of part one. It will include the key concepts for risk stratum such as the business objects and screenshots of the workflow in the solution.     Find more articles from SAS Global Enablement and Learning here. ... View more