Chapter Holds First Central Jersey Dinner Meeting
Model Risk Management Key Topic
The NY/NJ Chapter recently held the Chapter’s first dinner meeting in the central New Jersey area. The May Dinner Meeting was specifically intended for the convenience of Chapter Members in the central portion of the state. The event was held at the newly redesigned Renaissance Woodbridge hotel in Woodbridge, NJ on Tuesday May 8, 2012. The hotel is conveniently located on Route 1 just off the Garden State Parkway.

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Salvatore Zerilli FMS presentation
Featured dinner speaker Salvatore Zerilli CPA, from the Mercadien Group presented Model Risk Management.

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Steve Fusco FMS photo
Chapter President Steve Fusco welcomed the attendees to the Chapter's first dinner meeting in the central New Jersey region.

Members enjoyed the opportunity to discuss the latest developments in the world of financial services during the Chapter sponsored cocktail hour that kicked off the evening. Salvatore Zerilli, CPA from the Mercadien Group was the featured speaker following the full course dinner. Mr. Zerilli presented a timely and informative session entitled Model Risk Management.

A model is defined as a method, system or approach used to process data using assumptions to arrive at a quantitative estimate. He noted how banks utilize a number of models in the decision-making process in a number of key areas to measure capital adequacy, underwrite loans and primarily to measure interest rate risk.

He discussed the factors that financial managers must evaluate in order to implement models effectively including validation, maintenance and the potential loss from reliance on improper assumptions. Salvatore concluded by recommending the roles and responsibilities that institutions should establish for successful model implementation. He stressed the importance of an independent review process and the important role that a bank’s internal audit function should play in the overall effectiveness of the risk management framework.

Topics and Speakers

Model Risk Management

Salvatore Zerilli photo
Salvatore Zerilli CPA
Managing Director
The Mercadien Group
609 689-2344

Slide Presentation

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FMS Presentation photo
Chapter Members enjoy dessert and coffee while listening to the dinner presentation.