Five Benefits of Using ValidMind for Model Risk Management

When ValidMind co-founders Mehdi Esmail, Jonas Jacobi, and Andrés Rodríguez set out to build a solution that would simplify the tedious aspects of the model risk management (MRM) process, they started at the source. While building the product, which automates time-consuming documentation and eases the model risk process, the team worked directly with financial services institutions as design partners.

“We spent three to five months with each of them going through weekly reviews of the product and integrating the institutions’ feedback,” Esmail says.

He adds, “Everything you see in the product and all the features that we have built, link directly to a piece of feedback or research that we heard from customers and prospects that we have been talking to in the past three years.”

From that deep collaboration, ValidMind came to life, and customers realize significant benefits quickly.

Here are five of the many benefits that ValidMind customers are seeing from using it in their model risk management practice:

ValidMind is purpose-built

ValidMind is purpose-built for AI risk and model risk management professionals in the banking industry; being so focused on this particular pursuit makes the product more efficient.

“Everything else you find in the market is a bolt-on to an existing solution — not designed to help MRM professionals get through their work,” Jacobi says. “And even direct competitors only offer additional (MRM) feature sets on top of an existing platform that may not be designed for this particular profession.”

ValidMind is flexible and customizable

The ValidMind user interface includes collaboration tools for model risk management teams along with a developer framework.

“When you come to ValidMind,” Rodríguez says, “you’re able to adapt those to your needs.”

No matter the local, regional, or national regulatory frameworks a given team must adhere to, ValidMind can help teams stay compliant.

“It means we’re not only building something that is out-of-the-box made to work with U.S. regulation, but our templates can work for any regulatory framework and go beyond financial services to configure the tool for other industries as well,” Rodríguez explains.

ValidMind boosts efficiency

Model developers at financial institutions can spend up to 50 percent of their time documenting the work they did to build a model. By automating up to 80 percent of that documentation, ValidMind is helping model developers become even more efficient.

“They can put the time they’re saving into higher value activities, and that can really make a huge impact on those teams,” Esmail says.

ValidMind is a superior user experience

One of the core values that Esmail, Jacobi, and Rodríguez established when they launched ValidMind was to create the best possible user experience for model risk management teams in the industry.

“We hear from customers that they love the user experience that ValidMind provides,” Esmail says, “and we’re really proud of that.”

The intuitive interface adapts to your existing workflow, allowing for seamless collaboration between the three lines of defense in model risk management: model developers, model validators, and auditors.

ValidMind is platform agnostic

The ValidMind team has made a substantial effort to ensure that the solution is platform agnostic.

“If you’re looking at some people who may compete in this space,” Jacobi says, “they may have a platform they sell, but in order to use their model risk management piece, you have to buy in to their entire platform, including the development piece, the DevOps or MLops platform, or their observability platform.”

Jacobi says it was “critical” for the company to allow business units and model developers to pick the platform that works best for them without interfering with their daily work of building new and better models.

These five represent some of the most common benefits that are delighting ValidMind customers today, but it certainly is not an exhaustive list.

Interested in learning what benefits your MRM teams can realize with ValidMind? Book a demo today and find out how you can simplify, improve, and grow your model risk management practice.