Objectives On completion of this tutorial, you will be able to:

• Identify the different types of risk model that banks use and the development process for such models
• Recognize the main sources of model risk and how banks manage this risk
• List the reasons why data quality is a challenge for banks and the potential impact of poor data quality

Tutorial Overview Banks use models for numerous purposes, from internal risk measurement and management needs to meeting a variety of regulatory and financial reporting requirements. While these models are very useful and many banks have come to rely on them, they also come with various risks and challenges. This tutorial provides a high-level overview of risk models in banking, including the management of model risk and data quality issues that arises out of their usage. Prerequisite Knowledge Risk Management - Risk Types & Measurement Tutorial Level: Intermediate Tutorial Duration: 35 minutes