Independent Model Validation Services
In partnership with New Frontier Analytics
Through our strategic partnership with New Frontier Analytics, FRA offers access to rigorous, independent model validation services across the full spectrum of quantitative risk models. All validation work follows SR 11-7 guidelines and industry-standard methodology.
Validation Services
Comprehensive, independent model validation across all major risk domains — fully aligned with SR 11-7 regulatory expectations.
Credit Risk
End-to-end validation of credit risk models, ensuring accuracy and regulatory compliance.
Market Risk
Validation of models that manage fluctuations in market prices, interest rates, and liquidity positions.
Compliance Risk
Validation of models used for regulatory compliance, anti-money laundering, and suspicious activity detection.
Data & AI Risk
Governance, quality assurance, and validation of AI/ML models — including generative AI and advanced analytics.
Validation Methodology
All validation services follow a rigorous, structured process fully aligned with SR 11-7 regulatory guidance:
Model Design Review
Assessment of model design, assumptions, inputs, and data integrity.
Assumption Testing
Rigorous testing of model assumptions against market conditions.
Out-of-Sample Backtesting
Performance validation using holdout datasets and historical scenarios.
Sensitivity Analysis
Assessment of model behavior under varying input conditions.
Benchmarking
Comparison against industry standards and challenger models.
Governance Documentation
Executive summaries, issue ratings, and actionable recommendations.
Tools & Platforms
NFA validates models across the industry's leading platforms:
CECL
ALM
AML / BSA
Ready to Validate Your Models?
Reach out through Financial Risk Academy. We will connect you with the right team to discuss your validation needs.