EXPERT MODEL RISK MANAGEMENT PROGRAM
PRESENTED AT OCTOBER DINNER MEETING
Bond Portfolio Strategies Featured at Afternoon Mini-Session
ARTICLE AND PHOTOGRAPHY BY DAVID LAUWE - META4 COMMUNICATIONS
Anthony Ruda, a Director at the New York office of BDO, presented Is Your Model Risk Management Program Ready? at the Chapter’s recent October Dinner Meeting held on Wednesday, October 24, 2018 at the Stony Hill Inn in Hackensack, NJ. Anthony supports the Valuation and Business practice at BDO and specializes in valuation, structuring, model risk governance, model development and implementation.
Anthony briefly described the management services provided by BDO.He then defined a model as “a quantitative method, system or approach that applies statistical, economic, financial or mathematical theories, techniques, and assumptions to process input into quantitative methods”. Anthony then presented examples of models and emphasized the need for institutions to understand their exposure to model risk. He further detailed the key steps to creating and maintaining a comprehensive model inventory and developing model risk management documents and tools. Anthony concluded by emphasizing that once the necessary elements have been considered an institution should designate a “champion” who will be responsible for the implementation of the institution’s overall model risk management plan.
The afternoon mini-session featured a very informative presentation by Rachel Woods, Vice President and Senior Analyst at SunTrust Robinson Humphrey entitled Strategic Opportunities in the Bond Portfolio. Rachel cautioned financial managers that navigating the short-term economy will prove difficult in the face of the Federal Reserve’s monetary policy, potential inversion of the yield curve and recent equity market fluctuations. Rachel discussed the latest balance sheet trends and strategies employed by banks in the New York/New Jersey region. She described the current bond portfolio environment and provided key investment strategies that institutions can evaluate and employ to maximize relative value and avoid potential risks.
Members enjoyed the opportunity to network with peers during the cocktail reception following the mini-session. The reception featured an open bar and a seemingly endless array of irresistible appetizers served by the expert staff at the Stony Hill Inn. A full course dinner with selectins of sirloin steak or sautéed chicken with mushrooms was served prior to the dinner presentation.
While Members relaxed as dessert and coffee was being served, Past Chapter President Steve Fusco addressed the Membership. Steve is the Chief Financial Officer of SB One Bank and currently serves as the Chairman of FMS National. He briefly described his experience with the NY/NJ Chapter and his current role as National Chairman. Steve discussed the steps he is taking to maximize the value of FMS membership and emphasized the importance of each Member’s responsibility to increase the Chapter’s Membership in light of industry consolidation.
Topics and Speakers
Is Your Model Risk Management Program Ready?
Strategic Opportunities in the Bond Portfolio
Rachel Woods, CFA
Vice President, Senior Analyst SunTrust Robinson Humphrey