CU Webinar Vendor Management Program – How Model Risk Fits In
Tuesday, December 11th, 2018 – 1:30 pm – 3:00 pm CT
With financial institutions increasingly relying on third-party providers to offer all their products and services comes increased risk. Starting with the core system, should you outsource it or keep it in-house? And following with the rest of all the banking products you offer to your business clients or members that depend on technology, how in depth should your due diligence be? In this educational session, the presenter provides best practices based on the FFIEC IT Examination Handbook to help you develop a simple yet comprehensive Vendor Management Program. In addition, along with Vendor Management, which includes all the third-party providers of systems and software, comes yet another risk—Model Risk. The presenter will explain step by step the OCC SR Letter 11-7 following their guidance on Model Risk Management. You will walk away with a clearer understanding of where Vendor Management and Model Risk Management fit it within your ERM program.
This webinar will help your institution identify key vendor relationships and conduct the appropriate due diligence. In addition, you will learn how Model Risk fits in the Vendor Management and how model risk affects your institution from a simple Excel spreadsheet to the more complex reports produced by your core system.
Key Learning Objectives
- Increase overall knowledge of Vendor Management and what it means to have a Vendor Management Program
- Understand how Vendor Management is part of your ERM Program
- How to complete the Model Risk Assessment which is part of the ERM Risk Assessment
- Benefits of having a Vendor Management Program established
- Benefits of having a Model Risk Management Program in place
- How Vendor Management Program fits in within Enterprise Risk Management
- Vendor Management Program Components
- Vendor Management Policy and Procedures
- Vendor Due Diligence
- Example of Vendor Risk Assessment
- Monitoring and Reporting Assessment Results
- Definition of Model Risk and how it applies to your Institution
- The OCC SR Letter 11-7 – A Step by step explanation
- Examples of Model Risk – How it affects your institution
- Example of Model Risk Assessment
- How to establish your own Model Risk Management Program
Who Should Attend? Chief Risk Officers, Risk Managers/Leaders, Chief Credit Officers, Chief Financial Officers, Compliance Officers, Internal Auditors, and Presidents involved in the risk management process and their ERM program will benefit from attending this webinar.
Speaker: Marci Malzahn is the president and founder of Malzahn Strategic, a community bank consultancy focused on strategic planning, enterprise risk management, and talent management. Marci has 23 years of banking experience, the last ten as the EVP/CFO/COO of a community bank she helped start where she oversaw all the bank operations areas, including finance, IT, compliance, internal audit, deposit/loan operations, office management, risk management, and HR. In her last year as EVP/COO/CRO, Marci created and focused on the bank’s risk management program. She was also the corporate secretary of both the holding company and the bank.Before starting the bank in 2005, Marci took a detour from banking for five years and worked for a $34 million revenue non-profit organization where she led IT, HR and Finance. Marci’s extensive experience in banking infrastructure and her passion to help other banks succeed led her to found Malzahn Strategic in 2014.
Marci is the recipient of a number of professional awards, is a published author of three books, and an international bilingual public speaker, speaking frequently at banking conferences and associations. Marci holds a B.A. in business management from Bethel University and is a graduate of the Graduate School of Banking in Madison, Wisconsin.