1. Risk-based Pricing Models: Compliance & Risks

Risk-based Pricing Models: Compliance & Risks

Risk-based Pricing Models: Compliance & Risks
Event ID: 72349
Not for Sale
Recording: 15200

Duration: 90 minutes including question and answer session.
Presenter(s): Ken Agle, president, AdvisX
$299.00 webinar or On-Demand, $399.00 webinar and On-Demand. Each option may be viewed by an unlimited number of attendees in one room. On-Demand includes full audio presentation, question and answer session, and presentation slides.
Credits: Live webinar approved for 1.5 NASBA credit hours (Management Services).
Who Should Attend? Compliance officers, lending officers, internal auditors, CFOs, loan marketing personnel, in-house counsel


Risk-based pricing emerged as part of the Fair and Accurate Credit Transaction Act of 2003. Given the length of time it has been in existence, it would seem sufficient for organizations to make the necessary adjustments to meet the technical requirements. Certainly, this is likely the case when it comes to notices where loan production systems provide automated notices to applicants as part of the normal disclosure process. But, what about the validity of actual pricing. Most organizations rely on models to effectuate pricing. The growth of such models was inevitable from a competitive, compliance and convenience perspective. But with such models comes a clear mandate. Are they valid?

Adapting to expanding requirements always challenges organizations that choose to stay in the game. Fortunately for those organizations technology has often emerged as a response to needed remedies. Yet, using that technology can often create its own risk factors.

When economic times are good and funds are relatively easy to lend without excessive risk, most financial institutions have found themselves in relatively strong positions from a credit risk and earnings perspective. Yet, the tough lessons of lending and risk have been taught many times over the past 30 years as the economic cycle repeats it’s all-too-often-forgotten pattern reminding us that good times only last so long.

Each of the major economic downturns over the past 30 years has had significant impact. For one, each downturn was often the catalyst for industry consolidation as institutions that failed to sufficiently prepare for the downturn found themselves in the regulatory crosshairs for closure. Second, for those institutions that weathered the storm, the regulatory lessons aimed at promoting change for the future were often significant to the point where even further consolidation through mergers and acquisition were the result.

Please join Kenneth Agle, president of AdvisX, for a 90-minute webinar as he provides a comprehensive foundational understanding of Risk Based Pricing requirements as well as the role that risk based pricing models (e.g., automated loan decisioning/pricing systems) play and the need and requirements for model validation. Knowledge of these factors is essential to promoting compliance in this emerging element of regulatory scrutiny and ensuring sound credit risk management.


Just a sampling of what this webinar will cover:

  • Foundational elements of Risk-based Pricing and specific guidelines for models that include model risk management.
  • Key factors for consideration in the use of risk-based pricing models including model development, implementation and use.
  • Why RBC models and systems require validation including the need to verify that models are performing as expected, in line with their design objectives and business uses.
  • Elements for consideration as part of an organization’s due diligence related to model accuracy and effectiveness.
  • How fair lending elements can come into play as it relates to RBC and the need to factor the model against key fair lending risk aspects.



Your conference leader for "Risk-based Pricing Models: Compliance & Risks” is Kenneth Agle. As president of AdvisX, Mr. Agle brings over 27 years of financial institution experience covering numerous facets of financial institution operations. Mr. Agle specializes in strategic regulatory response and in developing and implementing both proactive and reactive tools and systems to preempt and resolve issues affecting today’s financial institution. Prior to his consulting experience, Mr. Agle had been a financial institution examiner with the FDIC. As a commissioned examiner, Mr. Agle was principally involved in numerous examinations, including safety and soundness, compliance, BSA, IT and trust.


BankersWEB, a division of DKG Media, LP, wants you to be satisfied with your webinar. If this webinar does not meet your expectations, email us at [email protected].


BankersWEB certificates of participation are available to everyone completing this webinar.