Independent Model Validation Services

S&P Capital IQ's Independent Model Validation Services allow you to determine if your risk models are methodologically sound, perform appropriately and meet industry best practices. Our independent model valuation services lead to the reaffirmation and strengthening of the risk models that underpin important decisions that are made daily throughout your organization. These services can range from a high level and timely conceptual soundness to a rigorous validation process that includes any or all of the following:

  • Examination of the governance structure and current validation approach;
  • Gap analysis to regulatory requirements or best practices;
  • In-depth review of the conceptual soundness and methodology review/developmental evidence, and assumptions;
  • Benchmarking - review of internal models with comparable industry benchmarks;
  • Backtesting including statistical tests for discriminatory power and calibration;
  • Stress Testing including adverse economic impact scenarios on model output;
  • Verification of model operations including override and exception analysis
  • Model enhancement based on validation activities

Validation Services include a complete set of in-depth reports that can help gain regulatory approval, assist with the internal audit/validation teams and comply with stress testing requirements.