CO-CREATION LEADS TO AUGMENTED MODEL RISK MANAGEMENT FUNCTION This is our story of co-creating a solution with a leading U.S. bankWNS leveraged its analytics expertise to build a sophisticated framework to validate the accuracy of models that were similar to the client’s existing models. The framework entailed: ¦ Single and multi-step back testing ¦ Co-integration testing ¦ Sensitivity and scenario analysis Multiple validation and scoring methods were deployed to improve the bank’s modeling standards. Detailed validation reports were prepared for each model to highlight the shortcomings. WNS performed stress testing on the models using macroeconomic variables and assessed the impact of stress scenarios on the bank’s capital and profitability. The stress scenarios we

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