2022 Zip - Download Ss123

Firms should establish a robust board-level framework for model risk.

A team independent from the model developers must perform a critical review of the model’s performance and assumptions. Download Ss123 2022 zip

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: Firms should establish a robust board-level framework for

Models must undergo rigorous testing during development to ensure they are fit for purpose. Firms must maintain a complete inventory of all

Firms must maintain a complete inventory of all "models" in use.

A designated Senior Management Function (SMF) must be accountable for the MRM framework.

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