Model/Spreadsheet Audit & Remediation
Methodological Review: A financial model is a method for transforming historic data into financial outputs. This can be by using statistical analysis of historic data to establish a relationship between key variables to use as the basis for forecasting. It could be a deterministic approach where the modeller uses historic data, estimates from subject matter experts to create mathematical relationships between the data to create forecasts for the desired outputs. We have the expertise to critically evaluate the methodological underpinning of your model to evaluate if it is fit for purpose
Reviewing the Model Implementation – Auditing and remediating spreadsheets: Following our work on Modelling Methodology, we undertake spreadsheet/model implementation audit, remediation to evaluate if the model is doing what it is supposed to be doing. Using state of the art spreadsheet auditing software and our own bespoke tests for spreadsheet best practice we can critically evaluate key spreadsheets and the information they provide.
Using specialist spreadsheet audit/review software: We have experience of using desktop spreadsheet audit review programmes such as ExChecker or Operis OAK we have experience using automated tools to review the “plumbing” of your model in excel. Furthermore if a systematic audit and remediation of an organisation’s key spreadsheets is required, we have wide experience of using server based auditing tools. These review the complete spreadsheet estate and the history of changes to them.
Best Practice policy/guidelines: One-off review projects are of limited use unless accompanied by implementation of a company wide Model/Spreadsheet Best Practice policy. We have experience of drafting and implementing such guidelines in a way that helps safeguard the integrity of information from company spreadsheets whilst not placing unreasonable demands on spreadsheet users.
Project for Building Society to provide model governance support to recently created Analytics Centre of Excellence.
- Creating a model governance framework to apply key financial models to help minimise risk of serious model error. Framework includes general model governance policies, specific best practise guidelines for model software (Excel, SAS) and a review audit programme.
- Creating a model risk/most best practice training programme to roll out to business.
- Implementing model audit programme reviewing key Excel & SAS models
- Working with newly created stress testing unit to share modelling best practice and to use stress testing work to as an additional sense check on analytics models
Consultant for UK IT Consultancy on spreadsheet/model remediation project in the Trading & Quantitative Finance department of major UK corporate auditing and remediating business critical models/VBA programmes
Solvency II related data quality project for UK Insurer, focusing on End User Computing. Responsible for end to end process to ensure that company End User Computing (EUC) files i.e. Spreadsheets & databases were fit for purpose. Defining risk appetite designing and implementing EUC Diagnosis & Remediation guidelines which could be individually tailored depending on the criticality and internal risk characteristics of spreadsheet/database. Liaising with suppliers of EUC audit/control software and advising on purchase. Designing a programme to diagnose and remediate where necessary all business critical EUC files using external consultancy for methodological and quality assurance. Managing internal team assembled to deliver programme.