Model Management - ClusterSeven

Model Management

Why Does It Matter?

Financial institutions and senior business managers value spreadsheet-based models to help them to better understand their business, generate strategic options, create investment options and help with issues around resource allocation. Spreadsheets are often the ‘go to’ application because of their flexibility, power and convenience.

Effective model management is vital because of the strategic nature of their use. Issues with the accuracy of spreadsheets as they are being developed or updated can mean that managers make poorly informed business decisions that can expose the business to legal, commercial or reputational harm, and the need to restate earnings. For regulated businesses, it can mean that regulatory results are mis-reported, exposing management and firms to censure and fines. Spreadsheet risk management is of key importance to delivering valuable and insightful models, efficiently and effectively.

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 develops automated spreadsheet risk management solutions for companies who use models as part of their core processes. Our solutions, both cloud-based and on-premise, help institutions to design, develop, manage & upgrade their models, knowing that any spreadsheet errors,  missing data or stale data, are identified and fixed before they impact business decisions.

Our solutions encompass discovery, alerting, workflow, approvals, auditing and reporting, allowing modellers to enhance the development, management and decommissioning of their business critical models. Our solutions help institutions address range of issues including SR 11-7, Targeted Review of Internal Models (TRIM), and SS3/18.

Model Management and Spreadsheet Risk

Spreadsheet risk often forms a key part of model management:

CECL Reporting    SS3/18 Stress Testing    SR 11-7 Model Governance

Get In Touch

Let's talk about how you can control spreadsheet risk.