Internal auditing of model risk within banking institutions

Show simple item record Lingenfelder, R. 2016-03-15T11:57:16Z 2016-03-15T11:57:16Z 2015
dc.description.abstract Faulty or improper usage of models has contributed significantly to financial and banking institutions’ experience of damage to their reputations and profitability. Since the global financial crisis of 2008, regulators have become increasingly concerned about the soundness of decision-making processes underpinned by, and capital requirements derived from models. Additionally, banking institutions have now recognised that flawed models are a source of significant operational risk and reliance on them can have negative consequences. Based on the importance of and increased use of models, internal audit functions should be equipped to provide assurance and auditing services to such areas within financial institutions. This research study investigates the broadening of the internal audit function’s ambit to include robust coverage of model risk within banking institutions. A brief literature review on model risk within banking institutions is followed by an investigation into internal auditing expectations and requirements regarding the coverage of model risk. The quantitative research which was performed is described, and conclusions drawn as to the state of risk management, internal audit’s coverage and the skills needed to effectively assess model risk. In addition, the degree to which these have become embedded in these organisations is assessed. The research paper concludes with a set of recommendations on how internal en_ZA
dc.description.librarian am2015 en_ZA
dc.description.uri en_ZA
dc.identifier.citation Lingenfelder, R 2015, 'Internal auditing of model risk within banking institutions', Southern African Journal of Accountability and Auditing Research, vol. 17, no. 2, pp. 19-31. en_ZA
dc.identifier.issn 1028-9011
dc.language.iso en en_ZA
dc.publisher Southern African Institute of Government Auditors en_ZA
dc.rights Southern African Institute of Government Auditors en_ZA
dc.subject Internal audit en_ZA
dc.subject Model risk en_ZA
dc.subject Models en_ZA
dc.subject Model lifecycle en_ZA
dc.subject Banking institutions en_ZA
dc.subject Risk management en_ZA
dc.title Internal auditing of model risk within banking institutions en_ZA
dc.type Article en_ZA

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