Firms must maintain a complete inventory of all "models" in use.
Models must undergo rigorous testing during development to ensure they are fit for purpose.
The PRA defines a as any quantitative method or system that applies theories and assumptions to process input data into output. Principle 2: Governance
When models have known limitations, firms should use Post-Model Adjustments (PMAs) to account for latent risks. Implementation Timeline
Firms should establish a robust board-level framework for model risk.
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
A designated Senior Management Function (SMF) must be accountable for the MRM framework.
A team independent from the model developers must perform a critical review of the model’s performance and assumptions.
Download Ss123 2022 Zip Apr 2026
Firms must maintain a complete inventory of all "models" in use.
Models must undergo rigorous testing during development to ensure they are fit for purpose.
The PRA defines a as any quantitative method or system that applies theories and assumptions to process input data into output. Principle 2: Governance Download Ss123 2022 zip
When models have known limitations, firms should use Post-Model Adjustments (PMAs) to account for latent risks. Implementation Timeline
Firms should establish a robust board-level framework for model risk. Firms must maintain a complete inventory of all
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
A designated Senior Management Function (SMF) must be accountable for the MRM framework. Principle 2: Governance When models have known limitations,
A team independent from the model developers must perform a critical review of the model’s performance and assumptions.
