Prior to placing reliance on spreadsheet models, an assessment of the level of risk and potential errors is critical. It is arguable that the end-user computing environment is now the most uncontrolled activity occuring within organisations.
At Numeritas we are aware that many organisations have in-house modelling capability and skills. Despite most modelling teams being professional and capable, independent verification and support in quality assurance is often overlooked. We are committed to meeting the needs of such organisations by providing a layer of independent quality control to their model development processes.
Numeritas has developed a range of risk management services and industry leading spreadsheet interrogation software. Combining our methodologies and technology enables us to deliver cost effective and value-added risk management services.
Best practice review
Numeritas developed a Best Practice Review risk management service initially to meet requirements for bid submissions in the Rail Franchise Bidding environment.
This method of assessment is focussed on understanding the quality of the design and build of the model. It is valuable both to a developer as well as to anyone who is intending to use or place any reliance on models developed for them by third parties.
The broad premise is to conduct an assessment against a set of development standards, reporting areas of non-compliance to the standard. Ultimately everyone has a slightly different view of what constitutes best practice and our service can, within certain bounds, customise the standards applied in the Review, making it a bespoke solution for our clients’ requirements.
Model risk assessment
Gaining confidence in the logical integrity of financial models is critical where significant decisions are being assessed. Our Risk Assessment approach is based on a combination of the leading industry practices, including automated software analysis tools and unique formulae review as applied in the Big 4 Accounting firms. We have further enhanced and incorporated other innovative techniques such as analytical review, stress testing and parallel modelling which we have developed over the last five years from our learning and experience.
Our service is not a ‘one size fits all’ solution and we pride ourselves on being able to create a bespoke model risk assessment service to meet our clients’ requirements. Numeritas consultants not only provide a professional assessment of the risk of error in your model but also seek to highlight potential enhancements. This dual focus supports our clients in reducing risk, reducing the cost of our assessment and simplifying on-going maintenance of the model.