Model Risk Management and Validation (AGRC-056) Training Course

Model Risk Management and Validation

Models are used throughout modern organisations to price products, assess credit, value assets, forecast demand, detect fraud and support strategic decisions…

5 daysClassroom or online

49Upcoming dates

12Cities

£2,250Fees from

Course overview

Introduction

Models are used throughout modern organisations to price products, assess credit, value assets, forecast demand, detect fraud and support strategic decisions. Increasingly these include machine learning and artificial intelligence models. When models are poorly designed, misused or not monitored, they can produce costly errors and regulatory breaches.

This Model Risk Management and Validation training course explains how to govern, validate and monitor models across their life cycle. Participants learn how to build a model inventory, tier models by risk, set development and documentation standards, perform independent validation, monitor performance and manage model changes and limitations.

The course draws on widely recognised supervisory guidance and industry practice, and is relevant to both financial institutions and other organisations that rely heavily on analytical models.

Course Objectives

By the end of this training course, participants will be able to:

Explain the sources and consequences of model risk
Design a model risk management framework and governance
Build and maintain a model inventory with risk tiering
Set standards for model development and documentation
Plan and perform independent model validation
Monitor model performance and manage limitations
Address specific risks of machine learning and AI models
Report model risk to senior management and the board

Target Audience

This training course is suitable for a wide range of professionals, including:

Model risk managers and validators
Quantitative analysts and model developers
Data scientists
Risk managers and chief risk office staff
Internal auditors reviewing models
Compliance and regulatory affairs professionals

Training Methodology

The course combines framework discussion with practical validation exercises. Participants tier a sample model inventory, review model documentation, design validation tests, interpret monitoring results and evaluate the governance of an AI model. Case studies illustrate model failures and lessons learned.

Target Competencies

Model risk governance
Model inventory and tiering
Model validation techniques
Performance monitoring
AI model risk awareness
Model risk reporting

Course outline

1Day One: Understanding Model Risk

What counts as a model and why definitions matter
Sources of model risk: design, data, implementation and use
Consequences of model failure with real examples
Supervisory expectations for model risk management
The model life cycle from development to retirement
Roles of owners, developers, users and validators
Exercise: identifying models in your organisation

2Day Two: Governance, Inventory and Standards

Model risk management policy and governance structure
Building a complete model inventory
Risk tiering based on materiality and complexity
Model development standards and documentation
Approval processes and use limitations
End-user computing tools and spreadsheets
Workshop: tiering a sample model inventory

3Day Three: Independent Model Validation

Scope and frequency of validation by tier
Conceptual soundness and assumption review
Data quality and input testing
Benchmarking, back-testing and sensitivity analysis
Implementation and code review
Validation findings, ratings and remediation
Exercise: designing a validation plan

4Day Four: Monitoring and Change Management

Ongoing performance monitoring and thresholds
Model drift, stability and population changes
Overrides, overlays and management adjustments
Model change control and revalidation triggers
Managing model limitations and compensating controls
Decommissioning and retiring models safely and traceably
Exercise: interpreting a model monitoring report

5Day Five: AI Models, Reporting and Assurance

Specific risks of machine learning and AI models
Explainability, bias and fairness testing
Governance of third-party and vendor models
Model risk reporting and aggregate risk profile
Internal audit of the model risk framework
Building validation capability and independence
Personal action plan for model risk management

Frequently asked questions

How long is the Model Risk Management and Validation course?

The course runs over 5 days of classroom training, usually Monday to Friday.

When is the next Model Risk Management and Validation course?

The next public date is 7 - 11 Dec 2026 in Frankfurt. There are 49 upcoming dates in total.

Where is this course held?

Upcoming sessions run in Frankfurt, London, Barcelona, Munich, Paris, Rome, Vienna, Amsterdam, Dubai, Geneva, Kuala Lumpur, Madrid.

Can I take Model Risk Management and Validation online?

Yes. Every date can also be joined live online in a virtual classroom with the trainer, for £1,280 per participant. Choose "Live online" in the dates table when you register.

How much does the course cost?

Fees start from £2,250 per delegate, depending on the city. Fees include tuition and course materials.

Do participants receive a certificate?

Yes. Delegates who complete the course receive a London Leadership Management Innovation certificate of completion.

Can this course be delivered in-house for our team?

Yes. LLMI can tailor and deliver this course privately for your organisation at your premises or in one of our training cities.

Course information last updated 14 November 2026.

Model Risk Management and Validation

Course overview

Introduction

Course Objectives

Target Audience

Training Methodology

Target Competencies

Course outline

Dates and fees

Frequently asked questions

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