Digital Assets Products & Market Infrastructure
CONSULTING SERVICES
Independent validation and governance for high‑stakes models.
Model Risk, Validation & AI
Validation plans, tests, monitoring, and documentation for risk and AI/ML models.
OVERVIEW
SEDA's Model Risk, Validation & AI practice provides independent model validation and governance support for risk, pricing, credit, and AI/ML models — ensuring they meet regulatory standards and perform as intended.
Our validators have worked in model risk management functions at global banks and have deep familiarity with SR 11-7, SS1/23, and emerging AI governance frameworks from the FCA, SEC, and international regulators.
We validate models across a wide range — from traditional statistical credit models and derivatives pricing engines through to machine learning classifiers and large language model applications in financial services.
WHAT WE DELIVER
Independent model validation (SR 11-7, SS1/23 compliant)
AI/ML model governance framework design
Validation plan design and execution
Conceptual soundness and outcomes analysis
Model inventory and tiering assessment
Ongoing model monitoring program design
Typical deliverables
What to expect from an engagement.
01
Validation Report
A comprehensive independent validation report covering conceptual soundness, data quality, performance testing, and ongoing monitoring recommendations.
02
AI Governance Framework
A governance framework for AI/ML models, covering risk tiering, approval workflows, documentation standards, and performance monitoring.
03
04
Monitoring Framework
Design of an ongoing model monitoring program with performance metrics, threshold setting, escalation triggers, and reporting cadence.
Model Inventory Assessment
Review and rationalization of the model inventory, including tiering, documentation adequacy, and validation coverage gap analysis.
REGULATORY COVERAGE
Practitioners who have been on both sides.
Our model risk team includes former heads of model risk management at Tier 1 banks, SR 11-7 compliance leads, and quantitative specialists with direct experience validating hundreds of models across credit, market risk, pricing, and AI/ML.
SR 11-7 (Federal Reserve / OCC)
SS1/23 (PRA / Bank of England)
ECB TRIM expectations
Emerging AI/ML governance frameworks
CECL / IFRS 9 model requirements
CCAR / DFAST stress testing models