PRA proposes principles to manage model risk

The PRA published a consultation paper (CP) on 21 June 2022, setting out its supervisory expectations in relation to firms’ management of model risk. The PRA’s expectations are formally presented in a draft Supervisory Statement attached to the CP. The PRA is proposing a set of principles to ensure banks establish an effective model risk management framework.

Download this At a glance to see a detailed analysis of the proposals, and what they mean for firms.