ValidMind

ValidMind drastically simplifies the end-to-end model risk management (MRM) process for financial institutions. The company meets the industry’s needs by offering a user-friendly platform that aligns customers’ MRM practices with all necessary regulatory requirements. Specifically, the ValidMind platform was designed to help organizations adhere to the Federal Reserve’s SR 11-7 requirement for model risk management practices. The ValidMind platform is model agnostic, meaning it can work with any type of model that a bank develops. It’s also platform agnostic, allowing ValidMind to be implemented seamlessly and speedily into a bank’s existing tech stack. ValidMind is comprehensive, providing MRM teams with a developer framework to create models, a model inventory to track and manage models, automated real-time documentation, audit trails, logs, and all relevant evidence to validate everything related to a model.

The ValidMind tool is flexible. As AI-related regulatory changes take shape and new legislation is introduced in the U.S. and abroad (including the EU AI Act), ValidMind is designed to expand to ensure banks are able to keep their models current, compliant, and fully validated.

Today’s MRM teams must create robust documentation that meets model validation, internal and external audits, and full compliance requirements. Creating this documentation is often a time-consuming, tedious, and manual process. Resulting documents are often housed in Word documents or Excel sheets and are vulnerable to human error. Teams often make changes to their models, which requires ongoing changes in the documentation. ValidMind significantly automates the documentation process using AI, machine learning (ML) and large language model (LLM) technology. 

Customers have reported that prior to implementing ValidMind, the labor associated with this documentation can consume up to 50% of a model developer’s time. By automating the documentation part of the MRM process, ValidMind can reduce manual tasks by up to 80%. This means that a given developer working a 40 hour week spends up to 20 hours working on documentation. With ValidMind, that same developer would spend four hours on documentation. The 16 hours they get back in a given week can be reallocated to creating new models, improving existing models, and pursuing home-grown innovation within the bank.  

Banking customers see increased revenue associated with their ability to create new models and improve existing models. Risk is mitigated thanks to a reduction in human error. Banks save money and realize efficiencies by dedicating more of their model developers’ time to other tasks.