SS1/23 goes live tomorrow - Are you ready?
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It has been a year after the PRA issued their Supervisory Statement on Model Risk Management principles for banks (https://www.bankofengland.co.uk/prudential-regulation/publication/2023/may/model-risk-management-principles-for-banks-ss). This statement is effective starting tomorrow.
Model risk teams all over the UK have reviewed their approach to MRM to be aligned with the 5 principles. As model risk is a risk discipline on its own right, institutions have had to (re-)develop tools, approaches and procedures, and boost their MRM capabilities to better manage their modelling suites.