The client is one of the largest financial institutions in France. It offers its clients a wide range of products and services: savings, investment, treasury, financing, insurance and investment solutions.
The independent validation function represents the second line of defence of the risk function, and is in charge of ensuring the soundness and the quality of all internal models (Basel, IFRS9, ICAAP…) in compliance with relevant regulatory requirements. To complete its duties, it conducts a number of independent validation through the year according to an annual plan.
In this context, the focus was on the independent validation of various models as the mission consists in performing:
Depending on the time allocated to the validation and what is at stake regarding the model, the independent validation can be performed according to 3 different levels:
In any case, the approach consists in:
By its action, the independent validation team ensures: