Hi, the question asks us to outline the process which should be followed to develop an internal by the company. Due o the overlap between internal model and EC I laid out the ECM process steps outlined in the IAA note and summarized in section 1.4 of Chapter 26. The examners focused on the generic ERM model steps borrowed from CA1 and shown in Chapter 17 of Acted notes. Could I have gained a little credit for my solution?
I would expect you to earn quite a few marks for this - there is a lot of overlap in the processes. The big difference is that the internal model needs to be well documented and validated (which should be, but may not be, the case for an internal ECM!)
