Description

A focused course, tailored for you

Asset Pricing Model Governance for Risk Managers

Build the model validation workflow that turns override disputes into documented, audit-ready decisions.

The override was approved. The position moved against the model. Now the examiners want the rationale trail and it lives in three separate email threads.

$199 one-time

Tailored to your situation. Access within 24 hours. 30-day money-back.

Includes a hand-built implementation playbook delivered alongside course access, generated for your specific situation.

Why this course

Asset risk and pricing managers at global banks operate at a specific fault line: their independent valuation says one thing, the front desk says another, and the model risk committee has to decide which signal governs the trade. When that decision is documented well, it is defensible under FRTB, SR 11-7, and internal audit. When it lives in a meeting recap email and a verbal agreement, the next adverse mark becomes a governance finding. The course builds the system that sits between the valuation model and the committee decision: the override workflow, the independent price verification (IPV) standard, the model limitation register, and the escalation protocol that keeps the risk function credible under scrutiny.

What you walk away with

Build an override workflow that captures the Front Office rationale, the model risk counter-argument, and the committee decision in a single auditable record.
Establish an independent price verification standard that satisfies FRTB Day 1 P&L attribution and internal audit requirements.
Construct a model limitation register that tracks known pricing gaps without triggering automatic escalation on every override request.
Write the model risk committee memo format that regulators and internal auditors accept as evidence of governance rather than post-hoc documentation.
Design the escalation protocol that routes material pricing disputes to the right governance level before the position is booked, not after.
Produce a defensible IPV policy document that aligns your team's valuation standard with the front desk's booking methodology.

The 12 modules

Module 1. The Model Override Landscape at a Global Dealer

Maps the four categories of override request your team receives: data override (wrong input), model override (wrong method), parameter override (wrong calibration), and market consensus override (Bloomberg vs internal). Each category has a different governance pathway, a different committee threshold, and different documentation requirements under FRTB and SR 11-7. This module establishes the taxonomy so every subsequent workflow decision is grounded in the right category.

Module 2. Building the Override Request Form That Holds Up

Designs the structured override request that Front Office submits when they disagree with your model output. Fields covered: the trade identifier and valuation date, the internal model price and the proposed override price, the quantified P&L impact of the difference, the trader's rationale, and the model risk team's initial assessment. The template is calibrated to the SR 11-7 requirement that overrides be tracked and escalated based on materiality, not on desk preference.

Module 3. Independent Price Verification: The IPV Standard

Builds the IPV methodology your team applies to products where no reliable independent price source exists. Covers the hierarchy of acceptable price sources (exchange data, broker quotes, comparable instruments, model replication), the tolerance bands that trigger automatic escalation, and the documentation standard that satisfies FRTB Day 1 P&L attribution testing. Includes a worked example on a structured credit product where broker quotes disagree with your model by 15 basis points.

Module 4. The Model Limitation Register

Creates the living register that tracks every known limitation of every pricing model your team owns. For each limitation: the product scope, the market condition under which the limitation becomes material, the approved mitigation (override, reserve, or model adjustment), and the review frequency. The register is the governance artefact that transforms 'the model has known gaps' from an audit finding into an approved risk acceptance. Covers integration with the model inventory required under SR 11-7 and BCBS 239.

Module 5. The Model Risk Committee Memo Format

Designs the committee memo that turns a contested override into a documented governance decision. Structure: executive summary of the disagreement, the model output and its confidence interval, the override rationale from Front Office, the model risk team's independent assessment, the materiality threshold calculation, and the committee's decision with named signatories. This module covers what regulators and internal auditors look for in the memo as evidence of genuine deliberation rather than rubber-stamping.

Module 6. Escalation Thresholds: Materiality Without Paralysis

Builds the materiality framework that determines which overrides go to the desk head, which go to the model risk committee, and which go to the Chief Risk Officer. Calibrates thresholds to the product class (vanilla rates vs exotic credit vs equity derivatives), the market regime (normal vs stressed), and the cumulative override position across the trading book. Covers the specific language regulators use to distinguish a robust escalation framework from checkbox approval.

Module 7. XVA Governance and the Pricing Override Interface

Addresses the governance challenge where XVA adjustments (CVA, DVA, FVA, KVA) interact with Front Office override requests. The XVA desk marks from a different model than the trading desk books, and that gap is as much a governance gap as a pricing gap. This module builds the protocol for documenting XVA-related overrides, the escalation pathway when CVA and market risk disagree on credit exposure, and the committee memo format that satisfies both risk functions.

Module 8. FRTB and the Override Trail

Maps the specific FRTB requirements that your override workflow must satisfy: the P&L attribution test documentation, the real price observations required for IMA desk approval, and the boundary between the banking book and the trading book when override decisions affect the classification. Covers the examiner's view of override frequency as a signal of model reliability and how to structure your override log so that high-frequency overrides on a specific product do not automatically disqualify the desk from IMA status.

Module 9. The IPV Policy Document

Writes the IPV policy that governance, compliance, and regulators accept as evidence that your team's valuation standard is independent of Front Office. Policy elements: the governance structure, the product scope, the price source hierarchy, the tolerance methodology, the override governance interface, the escalation chain, and the periodic review cadence. Includes a section on closing the gap between what the policy states and what the team actually does before the next internal audit.

Module 10. Communicating Model Risk to Non-Technical Committees

Builds the communication format for presenting model risk and override decisions to committees that include finance, compliance, and business heads who are not quantitatively trained. Covers the executive summary structure (one-page maximum), the visual representation of the Front Office vs model risk disagreement, and the specific language that conveys model limitation without triggering alarm. Includes worked examples from rate product overrides and the committee questions that most often derail a technically sound governance memo.

Module 11. Internal Audit and the Override Record

Prepares your team for the internal audit review of the override function. Covers what the audit team looks for in the override log (completeness, materiality classification, approval chain, resolution tracking), the most common finding types (undocumented verbal agreements, override rationale that is too generic, expired committee approvals, cumulative position not tracked), and the management response format that closes findings without creating future liability. Includes a pre-audit self-assessment checklist your team can run quarterly.

Module 12. Building the 90-Day Governance Uplift Plan

Assembles modules 1 through 11 into a 90-day implementation plan for your team. Sequencing: the override form and materiality thresholds in the first 30 days (immediate audit risk reduction), the model limitation register and IPV policy in days 31 through 60 (structural governance), and the committee memo standard and FRTB alignment in the final 30 days (regulatory readiness). The plan accounts for Front Office resistance and the committee calendar cycle.

How this addresses your situation

Specific modules that map to what you said you are dealing with.

Override request from Front Office disagrees with your IPV mark by more than the tolerance band: modules 2, 3, 6.

Internal audit finding on incomplete override rationale documentation: modules 2, 5, 11.

FRTB examiner questions the override log as part of an IMA desk review: modules 8, 9, 4.

XVA governance dispute between market risk and counterparty credit risk on a CVA override: module 7.

What you get with this course

12 written modules covering override governance, IPV methodology, model limitation registers, and FRTB alignment.
Override request form template with all fields calibrated to SR 11-7 materiality requirements.
Model limitation register template with product scope, mitigation type, and review cadence columns.
Committee memo format with section structure, language guidance, and worked example from a structured credit override.
IPV policy document framework with governance structure, price source hierarchy, and tolerance methodology.
Pre-audit self-assessment checklist for the override function.
Hand-built implementation playbook delivered alongside course access, tailored to asset risk and pricing governance at a global dealer.

What you will have in hand by Day 1, Week 1, Month 1

Within 24 hours your account in the learning environment is provisioned and the tailored implementation playbook is delivered alongside it.

Before and after

Before

Override decisions live in committee recap emails, verbal agreements, and individual model risk team members' inboxes. The next adverse mark produces an audit finding rather than a governance trail.

After

Every override request moves through a documented workflow with a materiality classification, a committee memo in the approved format, and an auditable decision record that satisfies FRTB, SR 11-7, and internal audit requirements.

What happens if you do not address this

The next FRTB examiner review or internal audit of the override function will find the gap between the policy and the practice. Model risk credibility with Front Office and the committee erodes when the rationale trail is incomplete. The cost of a governance finding after the fact is higher than the cost of building the workflow before it.

Who it is for

Asset risk managers and pricing managers at global investment banks and regional dealers who own the independent valuation function, manage model override requests from Front Office, and are accountable to model risk governance under SR 11-7, FRTB, or equivalent local supervisory standards. Typically sitting between the trading desk and the model risk committee, with daily exposure to mark-to-model disputes, XVA governance, and pricing model limitation reviews.

Who this is NOT for. Quantitative analysts who build the pricing models themselves. Front office traders. Risk technology developers. This course is for the governance layer, not the model construction layer.

How it arrives

Text-based course in the Art of Service learning environment, plus downloadable templates and worked examples for every module, plus the hand-built implementation playbook delivered alongside course access.

Time investment. Each module is designed for a 45-minute working session. Full course completion in approximately 9 hours, spread across the working week.

Why $199 is the right number

Model risk certification programmes cover the theory of model validation but do not build the governance workflow or the committee-ready documentation artefacts. Internal training at global banks covers the firm's existing standards but does not address the gaps between those standards and what examiners actually test for. This course builds the artefacts your team does not yet have, not a review of the theory behind the ones you do.

FAQ

The course covers SR 11-7 and FRTB. Does it also apply to our local supervisory standards (PRA, ACPR, ECB)?

The governance principles and documentation artefacts are calibrated to SR 11-7 and FRTB as the most rigorous global standards. PRA, ACPR, and ECB supervisory expectations are substantively consistent with these frameworks on override governance and IPV. The implementation playbook addresses the specific language differences you are likely to encounter in a European regulatory context.

We already have an IPV policy. Will this course add anything?

The course audit-tests existing policies against the full set of examiner expectations rather than the policy owner's intent. Most IPV policies have a complete governance structure on paper and a gap between the price source hierarchy in the policy and what the team actually uses when no reliable independent source exists. Module 9 specifically addresses how to identify and close that gap before the audit does.

Is this relevant for the banking book as well as the trading book?

The core override governance and IPV methodology applies to any position where the risk function owns an independent valuation responsibility. The FRTB-specific modules (8 and 12) are trading book focused. Modules 1 through 7 and 9 through 11 apply across both books.

30-day money-back guarantee. If after a week of working through the materials this is not what you needed, reply to the receipt email and a full refund is processed. No questions, no forms.

Within 24 hours your account in the learning environment is provisioned and the tailored implementation playbook is delivered alongside it.