How to manage your EUC models
The first step is to create a centralized inventory of models, which provides the basis for effective model management and control. An inventory provides you with a model framework that proactively monitors models. It provides a repository of documents that define the use, design and ownership of a model. It provides the basis for the workflow approval process which is a crucial element of change management that the PRA expects to see.
The next step is proactively monitor your models. Regular attestation processes allow users to confirm the status of their models and highlight changes and developments that need to be reported to management, risk and compliance teams, and the PRA. Companies should not ignore spreadsheet-based models in this monitoring and change control process. These alerts form the basis of reports that provide visibility to risk, compliance, and management teams that the PRA said needed improvement.
With the inventory and controls in place, the final phase is Discovery, where you ensure the veracity of the inventory to ensure that it captures all models used, especially those managed by end users (eg spreadsheet models). The best practice – the expectation of PRA – will require banks to search across IT assets, across PCs, file partitions, SharePoint sites or cloud computing environments. The risks of missing a model that could be a key spreadsheet are too great. The widespread use of EUC models in every business process requires powerful, scalable, and robust search capabilities.