A team independent from the model developers must perform a critical review of the model’s performance and assumptions.
While the statement was finalized in 2023, the foundation was laid in through the CP6/22 Consultation Paper. Most firms were expected to have implemented these principles by May 2024. SS1/23 – Model risk management principles for banks Download Ss123 2022 zip
When models have known limitations, firms should use Post-Model Adjustments (PMAs) to account for latent risks. Implementation Timeline A team independent from the model developers must
Models must undergo rigorous testing during development to ensure they are fit for purpose. Download Ss123 2022 zip
Firms should establish a robust board-level framework for model risk.
A team independent from the model developers must perform a critical review of the model’s performance and assumptions.
While the statement was finalized in 2023, the foundation was laid in through the CP6/22 Consultation Paper. Most firms were expected to have implemented these principles by May 2024. SS1/23 – Model risk management principles for banks
When models have known limitations, firms should use Post-Model Adjustments (PMAs) to account for latent risks. Implementation Timeline
Models must undergo rigorous testing during development to ensure they are fit for purpose.
Firms should establish a robust board-level framework for model risk.