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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 should use Post-Model Adjustments (PMAs) to account for latent risks. Implementation Timeline Download Ss123 2022 zip

A designated Senior Management Function (SMF) must be accountable for the MRM framework. The SS1/23 Supervisory Statement (published in May 2023,

A team independent from the model developers must perform a critical review of the model’s performance and assumptions. The PRA defines a as any quantitative method

The PRA defines a as any quantitative method or system that applies theories and assumptions to process input data into output. Principle 2: Governance

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.