Large Bank Examination Workshop February 2026

Key Characteristics of Effective MRM • Appropriate and commensurate governance systems

• Model materiality classifications and limitations , where appropriate, on the use of individual models

• Policies and processes for model selection and development

• Independent vetting and ongoing validation/review

• Change control processes over the model lifecycle

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Key Characteristics of Effective MRM • Internal audit functions to independently assess the MRM governance and compliance framework • A model inventory that catalogues the type, classification and performance of all models in use, developed and approved for use, or recently decommissioned that could act as a benchmark or substitute for a model currently in use

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