PRA’s 4 Key Principles of Model Risk Management

The regulatory scrutiny being applied to Model Risk Management (MRM) is intensifying and spreading globally:

2011 – in the US, the Fed set out MRM principles
2016 – the European Central Bank (ECB) kicked off a Targeted Review of Internal Models (TRIM) for banks in countries with the Euro currency
2017 – PRA issued consultation paper CP26/17 “Model risk management principles for stress testing”

The consultation paper may only cover stress testing models; however, it is the PRA’s first public MRM guidance and is likely to form the basis of future, much broader MRM regulation in the UK. New regulation is likely to place direct responsibility for group wide MRM onto a senior director, affecting all major UK banks and insurers.

Enter your details to receive the free white paper:

By downloading this White Paper, you acknowledge that may share your information with our white paper partners/sponsors who may contact you directly with information on their products and services.

Visit our Privacy Policy for more information about our services, how Business Trade Media International Limited may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.