Congratulations to Celent's Model Risk Manager 2024 Award winners: Banco do Brasil, DBS Bank, Deutsche Bank, MB, Morgan Stanley, NatWest, and OakNorth.
The 2024 Model Risk Manager Awards recognize financial institutions for best practices of technology usage in areas critical to success in risk management. With these awards we celebrate strong initiatives and offer examples to inspire industry transformation. We are excited to highlight collaborative efforts that have improved banks' competitiveness by mitigating risks, lowering costs, or improving customer products and experiences. We are at a watershed moment in technological advancement. In this moment, we see many institutions implementing or preparing to implement AI functionality and automation in their risk systems. These benefits will only keep growing. This is an exciting time for risk technology at financial institutions!
Detailed case studies and video interviews on the winning initiatives are available as noted below.
Model Risk Manager of the Year 2024 Award Winner: NatWest—Transforming Risk Governance to Accelerate Change
Category: Operational Resilience
Synopsis: NatWest applied a customer journey-led approach to simplify and automate the risk management process for all “change the bank” initiatives. In partnership with Appian, the bank standardized and automated 17 disjointed governance processes and questionnaires into a single seamless approval process with a unified data model across all these areas. Sixty percent of all product change governance cycle times now take less than 90 minutes.
Winner: Banco do Brasil—Optimizing Sanctions Operations Through Technology Transformation
Category: Combatting Financial Crime
Synopsis: To overcome the operational challenges of Banco do Brasil’s legacy screening solution, the bank implemented a new sanctions screening solution at its overseas branches. The bank’s new solution, Napier AI, has transformed its sanctions screening operations and reduced false positives by more than 90%; given compliance users ownership over screening configuration and testing; and simplified deployment across business units.
Winner: DBS Bank—Using Machine Learning to Automate ALM Reporting
Category: Data Foundations of AI
Synopsis: DBS' self-developed Movement Analyser uses machine learning to automate manual operations and bring advanced real time data analytics to DBS’s asset and liability management process. This results in higher efficiency in risk reporting production and increased accuracy of reports fully explained and substantiated by data.
Winner: Deutsche Bank—Delivers Multi-Year Core Risk System Overhaul
Category: Data Foundations of AI
Synopsis: Deutsche Bank's CRAFT program overhauled the technology underpinning the bank’s global credit risk function. The program has transformed the bank’s ability to monitor, manage, and mitigate risk. The bank decommissioned more than 10 legacy applications, increased function productivity, and improved data quality by consolidating hundreds of data sources into a single data store, clearing a path for the system’s imminent migration to the cloud.
Winner: MB—Digitizing Market and Counterparty Risk Management
Category: Operational Resilience
Synopsis: MB has enhanced its market risk and counterparty credit risk (CCR) management to meet global standards. The bank has implemented a near real-time value at risk calculation tool, a real-time counterparty credit risk management system, and a system to calculate capital requirements under Basel III.
Winner: Morgan Stanley—The Portfolio Risk Platform
Category: Data and Analytics
Synopsis: Morgan Stanley Wealth Management has brought access to portfolio risk insights directly to its financial advisors to help them better serve their clients. This self-service approach to risk analytics, based on a customized implementation of BlackRock Aladdin, brings analysis of the risks as well as opportunities in client portfolios to Morgan Stanley’s financial advisors and to their end clients. The PRP platform is enabling top users of the platform to signficantly outperform their peers.
Winner: OakNorth—Weaving Climate Risk and Risk Management
Category: Emerging Risks
Synopsis: OakNorth's is integrating climate transition risk into portfolio risk management. Their ON Climate solution assesses climate transition risk and calculates financed emissions across the commercial loan book without collecting emission data from customers. This helps mitigate regulatory risk by identifying climate risk in portfolios early, supporting the creation of effective climate transition risk strategies.
