Which of the following statements is the responsibility of the Model Risk Committee?

Which of the following statements is the responsibility of the Model Risk Committee?
A . Assisting the administrators in fulfilling their obligations with respect to all the models used by the financial institution.
B. Copying the information about all the models stored in the model inventory.
C. Providing reports to the risk management committee, the board of directors and senior management on the status of model risk management.
D. Ensuring the composition of the committee membership is diverse.

View Answer

Answer: C

Explanation:

A Model Risk Committee is responsible for assisting the board of directors in fulfilling its obligations in respect to all the models used by the financial institution, ensuring the integrity of the information about all the models stored in the model inventory, ensuring the composition of the committee membership is appropriate, providing reports to the risk management committee, the board of directors and senior management on the status of model risk management.