Download Ss123 2022: Zip

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. Download Ss123 2022 zip

A team independent from the model developers must perform a critical review of the model’s performance and assumptions. When models have known limitations, firms should use

The SS1/23 Supervisory Statement (published in May 2023, following consultations in 2022) focuses on five core principles to ensure firms identify, assess, and mitigate risks from quantitative models: When models have known limitations

Firms must maintain a complete inventory of all "models" in use.

A designated Senior Management Function (SMF) must be accountable for the MRM framework.

Firms should establish a robust board-level framework for model risk.