Model Governance

Alex Zaidlin, FSA, MAAA, ACIA
Benjamin Farsnworth, FSA, MAAA, CFA

When was the last time your company reviewed its model governance framework? How much resource and time investment does it take for you to implement a model change? Do you have an effective model control framework in place?

Imagine model governance that accelerates the ability to make changes and make controls more effective. The time is now to focus on establishing model governance standards, build out the model control framework and carry out periodic model validation. Model governance in the production environment can be time consuming if not managed properly and you could risk your model getting clunky and cumbersome. Model owners need to balance competing priorities and manage their off-production cycle calendars very carefully. This session will take a fresh look at considerations around building model governance, discuss components of the model governance framework and guidance for successful execution of model governance in a production environment.

Alex is a Director at the Risk Analytics practice of KPMG LLP. He has over 12 years of experience with consulting, insurance and reinsurance firms. His actuarial experience includes transformation engagements, actuarial modeling and model enhancement projects, pricing and valuation, actuarial software conversions, actuarial audits, experience analysis, product and assumption development. Alex has helped multiple clients across North America build, implement and maintain their model governance frameworks around actuarial modeling. Alex is a Fellow of the Society of Actuaries, Member of the American Academy of Actuaries and Associate of the Canadian Institute of Actuaries.

Ben is a director in KPMG’s Risk Analytics practice with over 15 years’ experience in the life insurance industry. His current areas of focus include financial transformation, business analytics, model validation and risk analysis, and actuarial audits. Ben has also worked to develop a new model governance framework as part of transformation projects and reduce the model risk that has existed with legacy model processes. He is a Fellow of the Society of Actuaries, Member of the American Academy of Actuaries and CFA charter holder.

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