Corporate Model Risk (Cmor) Hadoop Infrastructure For Enterprise Risk Analytics

Abstract

Corporate Model Risk (CMoR) Hadoop Infrastructure is an innovative model to provide financial institutions with growing model governance challenges amidst the growing complexity of regulatory demands. This platform uses technologies of the Apache Hadoop ecosystem to provide a single platform to manage model risk across an enterprise, bridging the gap between the governance requirements and the technological ability. The architecture incorporates distributed storage and parallel computation with extensive security controls that were tailored to model validation processes. Multi-layered structure of governance provides regulatory alignment by ensuring full data lineage, role-based access control, and automated lifecycle management. The high level of analytical facilities provides the option of validating models simultaneously, large-scale benchmarking, as well as risk aggregation, which was limited by traditional infrastructures. The results of implementation indicate that there is a significant enhancement of the efficiency of validation, maturity of governance, and compliance with regulations among the various financial institutions, and a groundbreaking method of management of enterprise model risk in a regulated incentive setting.