QuestionAugust 9, 2025

My organization is buying an exciting vendor tool that will help predict customer behavior and update ad offerings as customers interact with the Capital One website Which of the following statements are true?(Select all that apply.) I do not need to register this as a model because it is a third party model and receives governance under Third Party Risk Management Vendor models are subject to the same governance requirements as internally developed models This may be a model, and I should consult with the Model Risk Office to ensure it is registered and appropriately governed My division can purchase whatever it wants to conduct its business and it only needs governance if there are issues

My organization is buying an exciting vendor tool that will help predict customer behavior and update ad offerings as customers interact with the Capital One website Which of the following statements are true?(Select all that apply.) I do not need to register this as a model because it is a third party model and receives governance under Third Party Risk Management Vendor models are subject to the same governance requirements as internally developed models This may be a model, and I should consult with the Model Risk Office to ensure it is registered and appropriately governed My division can purchase whatever it wants to conduct its business and it only needs governance if there are issues
My organization is buying an exciting vendor tool that will help predict customer behavior and update ad offerings as customers interact with the Capital One website Which of the following statements are true?(Select all that apply.) I do not need to register this as a model because it is a third party model and receives governance under Third Party Risk Management Vendor models are subject to the same governance requirements as internally developed models This may be a model, and I should consult with the Model Risk Office to ensure it is registered and appropriately governed My division can purchase whatever it wants to conduct its business and it only needs governance if there are issues

Solution
4.7(280 votes)

Answer

Vendor models are subject to the same governance requirements as internally developed models. ### This may be a model, and I should consult with the Model Risk Office to ensure it is registered and appropriately governed. Explanation 1. Evaluate Third Party Model Registration The statement "I do not need to register this as a model because it is a third party model and receives governance under Third Party Risk Management" is incorrect. Vendor models typically require registration and governance similar to internal models. 2. Assess Governance Requirements for Vendor Models The statement "Vendor models are subject to the same governance requirements as internally developed models" is true. Vendor models generally follow the same governance protocols to ensure compliance and risk management. 3. Consult with Model Risk Office The statement "This may be a model, and I should consult with the Model Risk Office to ensure it is registered and appropriately governed" is true. Consulting with the Model Risk Office ensures proper registration and governance. 4. Division Purchase Autonomy The statement "My division can purchase whatever it wants to conduct its business and it only needs governance if there are issues" is incorrect. Purchases must adhere to governance policies regardless of issues.

Explanation

1. Evaluate Third Party Model Registration<br /> The statement "I do not need to register this as a model because it is a third party model and receives governance under Third Party Risk Management" is incorrect. Vendor models typically require registration and governance similar to internal models.<br /><br />2. Assess Governance Requirements for Vendor Models<br /> The statement "Vendor models are subject to the same governance requirements as internally developed models" is true. Vendor models generally follow the same governance protocols to ensure compliance and risk management.<br /><br />3. Consult with Model Risk Office<br /> The statement "This may be a model, and I should consult with the Model Risk Office to ensure it is registered and appropriately governed" is true. Consulting with the Model Risk Office ensures proper registration and governance.<br /><br />4. Division Purchase Autonomy<br /> The statement "My division can purchase whatever it wants to conduct its business and it only needs governance if there are issues" is incorrect. Purchases must adhere to governance policies regardless of issues.
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