Lesson plan

Risk, capital and model governance

Use Moraph's risk products to govern models under SR 11-7, run stress tests and credit loss estimates with traceable judgment, and control spreadsheets, asset-based lending collateral and digital asset custody.

Back to the course

Product: Model Risk Management (MRM) Validator
Level: Advanced
For: Users, Administrators
Total time: 2 hr 49 min
Lessons: 14 in 3 modules
Assessments: 4

Course objectives

Keep a model inventory, confirm risk tiers and run reproducible validations in the Model Risk Management (MRM) Validator
Track monitoring breaches and findings to closure while keeping validators independent of the models they review
Build a stress testing run from approved scenarios and record overlays and challenges instead of editing results
Take a CECL or IFRS 9 allowance period from reconciled data to a locked, reproducible estimate
Explain how end-user computing controls, collateral monitoring and custody controls support model and capital governance
Recognize what each product decides for you and what remains your institution's judgment

Before the course

You have finished Moraph foundations, or you already know how records, stages and tasks work in Moraph Apps
You work in model risk, risk management, finance, credit, treasury or operations at a regulated financial institution, or administer the products they use
You are familiar with the basic ideas of model validation, capital planning and credit loss accounting

Module 1: Governing models with the MRM Validator (45 min)

Lesson	Type and time	Learners will be able to	Activity and assessment
The model inventory and risk tiering	Reading 12 min	Explain why a complete model inventory is the foundation of a model risk program under SR 11-7 Register a model with the information the Validator needs to propose a tier Confirm or change a proposed risk tier with a recorded reason Describe the Model, Validation and Finding record types and how they relate	Reading
Validating a model with reproducible evidence	Reading 13 min	Plan a validation and choose tests from the test library for a model's tier and type Run a test that records its data snapshot, model version, code version and parameters Record conceptual soundness review and effective challenge in your own words Use AI-assisted review drafts without letting them stand in for your conclusions	Reading
Monitoring, findings and approvals	Reading 12 min	Review a drift alert and decide whether it needs a finding Take a finding from Raised to Closed with an action plan, evidence and validator sign-off Explain how fair lending testing is defined and who may see protected-class analysis Prepare governance reporting for the model risk committee and give an examiner scoped access	Reading
Module 1 knowledge check	Assessment 8 min	Check your understanding of inventory, tiering, validation and findings in the MRM Validator Apply independence and evidence rules to realistic validation scenarios	5 questions · pass mark 70% · unlimited attempts

Module 2: Stress testing and credit loss estimates (1 hr)

Lesson	Type and time	Learners will be able to	Activity and assessment
Scenarios, runs and capital projections	Reading 12 min	Distinguish supervisory and internal scenarios and take a scenario from draft to an approved, locked version Set up a stress test run from an approved scenario, a data snapshot and selected model versions Explain what run lineage records and why it makes results reproducible	Reading
Overlays, challenge and locking a run	Reading 11 min	Propose a management overlay with a rationale instead of editing a model result Raise and answer a challenge so it is resolved before a run is locked Explain the four-eyes rules that govern overlays, final runs and the capital plan Prepare a board pack from a locked run	Reading
Closing the allowance under CECL and IFRS 9	Reading 14 min	Take an allowance period from data load and GL reconciliation to a locked, reproducible estimate Explain how pools, methods, forecasts and reversion combine into the quantitative estimate Propose and review a qualitative adjustment with evidence and independent review Use the movement analysis and back-testing to explain and challenge the estimate	Reading
Practical: challenge judgment in a capital cycle	Practical exercise 15 min	Review a proposed overlay and qualitative adjustment as an independent reviewer Write challenges that are specific, answerable and tied to evidence Decide what must happen before a run is locked and a period is approved	Practical exercise with a checklist
Module 2 knowledge check	Assessment 8 min	Check your understanding of scenarios, runs, overlays, challenges and the allowance close Decide how judgment should be recorded and approved in a capital or allowance cycle	5 questions · pass mark 70% · unlimited attempts

Module 3: Controls around the numbers (1 hr 4 min)

Lesson	Type and time	Learners will be able to	Activity and assessment
Controlling critical spreadsheets	Reading 12 min	Explain how Spreadsheet Risk Control divides responsibilities between Moraph, Apparity and your organization Register a file found by discovery and set its risk rating from your EUC policy Make and review a change to a high-risk file under version control Respond to an alert and complete an attestation	Reading
Monitoring asset-based lending collateral	Reading 12 min	Explain how the Dynamic Collateral Monitor reconciles a borrowing base certificate with the borrower's ledger Work a flag to a recorded finding and request a debtor verification Recommend and approve availability with separation between analyst and credit officer	Reading
Crypto-asset custody controls	Reading 12 min	Explain the roles of the bank, the sub-custodian and Moraph in the Crypto-Asset Custody Bridge Take a withdrawal instruction through checks and maker-checker approval Work a reconciliation break between the ledger of record and the sub-custodian Describe how address allowlisting, screening and travel rule checks hold instructions	Reading
Module 3 knowledge check	Assessment 8 min	Check your understanding of spreadsheet, collateral and custody controls Tell apart what Moraph, third parties and your institution are each responsible for	5 questions · pass mark 70% · unlimited attempts
Final assessment	Assessment 20 min	Show that you can apply model governance, stress testing, allowance and control practices from the whole course Judge which decisions the products support and which remain your institution's	12 of 18 questions · pass mark 80% · 3 attempts

Completing the course

Every lesson must be completed: reading lessons are marked complete by the learner, exercises when every checklist item is confirmed, and assessments only when passed. Completing the course issues a certificate of completion with a verification code.