A model review involves performing a detailed check of the logic of a model to determine whether it contains errors (and if so, where they are). Academic research undertaken by Professor Ray Panko at the University of Hawaii has consistently shown that all un-reviewed models contain errors. As such, if you want to get comfort around whether there are errors are in your model (so that you can fix them), it is necessary to have it checked by someone other than the person who built it.
At ClayMatter we seek to innovate and create cost effective solutions to modelling risk management, so we are pleased to announce Model Light™, our new offering that is designed to give you high level insights into your models. Our Model Light™ review can be thought of as a preliminary investigative step before committing to a more detailed and expensive full model review. It will provide you with both qualitative and quantitative commentary as to the current state of your model. This new offering is a balanced blend between the typical full review and a “do nothing because it is too expensive” approach. Typically it would cost around 10%-15% of the full model review price.