More questions trickling in from our attendees:
Questions on DQMs
Progress and Identification
How far along is your firm in identifying material and complex deterministic quantitative methods (DQMs), as outlined in PRA SS1/23, and onboarding them into your model inventory?
Review and Validation Practices
Are you currently conducting any form of review or light validation of these onboarded DQMs? If so, what level of depth are these reviews reaching, and how are you prioritising them?
Resourcing and Execution
Are these DQM reviews being handled by your internal model validation teams, or are you outsourcing this work? What factors influenced your approach?
Capacity and Resource Allocation
How are you managing internal resource capacity to accommodate DQM reviews alongside traditional model validations? Have you had to make trade-offs or adjustments?
Compliance and Readiness
On a scale from early-stage to fully compliant, how would you assess your firm’s current alignment with the DQM-related expectations under SS1/23? What challenges have you encountered in meeting these requirements?
Questions on AI / ML Validation
How are firms adapting their model validation frameworks to address the unique challenges of AI and ML models, particularly around explainability, stability, and governance?
Follow-up to that is : Are traditional validation techniques sufficient, or are you developing new tools and metrics specifically for AI/ML?
Join us for a morning full of insights!