In the heart of software development, in the city Brno, we launched a blog about IT.
The current pandemic has revealed the importance of remote work. While this might be a seamless process for professions like programmers, with their setup already prepared for remote work, the situation may have been a bit different for professionals involved in model governance and model risk management.
Here we go again. The last day of June and you can read interesting topics from the development world that we have read this month.
A few days ago, our first company hackathon finished successfully. But in order to define success, we have to define goals. With every new project, we evaluate what technologies to use.
The end of the month is marked by devtips recommended by developers from CloseIT. Look at interesting blog posts and website that we found during May.
In CloseIT, we have a channel on Slack where we share interesting development YouTube channels, blog posts, articles, etc. with each other. Here are our DevTips from last month.
Models used by financial institutions (FIs) are not defined only by their source code, datasets, and documentation, but also by the entire model lifecycle, which can typically be broken down into a set of workflows. Therefore, FIs often acquire workflow management systems, typically standalone, or the processes are "defined and maintained" in good old Excel sheets. While this might have seemed like a sufficient solution, there are much more advanced approaches, with an incomparably higher value for the business.
Almost out of nowhere, the whole internet is full of advice on how to cooperate within your team remotely. Well, for us, nothing really changes. In CloseIT we are used to working remotely, we are used to solving problems not only onsite with the team but also with clients remotely. So we maybe miss three small ones...
Model governance regulators are moving their focus closer and closer to the qualitative elements of a model – the model governance process. Unfortunately, the regulator also often asks the bank to explain their internal risk mitigation process without the providing the specific guidelines necessary to match the model to the bank’s methodology.
If you develop a public software product that uses third party code, it's very likely that licenses force you to list them on some visible place. You can find them in your smartphone OS or even in a car if you have one with the onboard computer.
Model inventories start to become more complex when one starts contemplating and later implementing them. They very often become an elementary component for all later model governance/model risk management related efforts. Having a solid foundation is key to smooth sailing in the future.
The Agile method Scrum is a more modern way of helping to eliminate Waterfalls' weaknesses. Its biggest advantage is higher project success, immediate client feedback at regular two-week intervals, higher satisfaction of the development team, etc., and, in close connection with the company's values, creates a powerful tool that takes quality and work to a completely different level.
I would like to discuss a problem with you that I see repeatedly encountered when performing complex, multifarious tasks such as bank stress tests: the lack of ability to concentrate on the "bigger picture" and the consequences this has on the analyst.