Model Governance - ClusterSeven

Model Governance

Why Does It Matter?

Financial models are an important tool for many organizations, as managers seek to better understand their business and the economy, to make better informed decisions. These models are used to make investment decisions, resource allocation decisions, and merger decisions for example. Excel spreadsheets are often the tool of choice, given their flexibility, power and ease of use. But their lack of change control means that model governance is vital to ensuring that these spreadsheets are accurate, error-free and fully auditable. Without these controls a business, and the models it relies on, is exposed to spreadsheet risk.

For financial services organizations, there is also a regulatory imperative of having to comply with modelling regulatory frameworks, including the Targeted Review of Internal Models (TRIM), SS3/18 and SR 11-7.

What Causes Spreadsheet Risk?

Spreadsheet risk is more likely to occur if there is a lack of:

  • Understanding of what spreadsheets are used in models across the business.
  • Appreciation of the business impact of spreadsheet errors in the models.
  • Clear ownership of model spreadsheets across the business.
  • Process around how changes are made to spreadsheets.
  • Defined risks to the business due to spreadsheet complexity.

The Solution: Automated Spreadsheet Risk Management

ClusterSeven offers spreadsheet risk management solutions that allow businesses to manage their spreadsheet estate in the same they manage their corporate IT applications, providing comprehensive governance and control.

For modelling, risk and compliance teams, our solutions allow them systematically understand, manage and monitor their spreadsheet-based models, the data feeds they utilize and the reports they generate, to ensure that the models are error-free, that changes are approved and audited, and  aligned to the needs of the business. As well as implementing best practice model governance, for financial services organization, our solutions help comply with a range of model governance frameworks including TRIM, SS3/18, and SR 11-7.

Get In Touch

Let's talk about how ClusterSeven can increase transparency and control around your spreadsheets. Build confidence in your business critical processes and the accuracy of your data, empowering you to make informed business decisions.

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