Large Bank Supervision Forum 2023

Model Risk Management (MRM) Key Stakeholders

Third Line Internal Audit

First Line Developers Owners Users

Second Line MRM Unit

Audit the contents of and compliance with MRM Policies, Procedures, and Standards within the First and Second Lines of Defense.

• Validation • Annual Model Rev. • On ‐ going Monitoring

• Model Development • Model Implementation • Model Use

Governance and Oversight Board of Directors & Senior Management Model Use Risk Escalation, Periodic Model Risk Reporting Model Risk Framework


Model Risk Management Policy At a minimum, the approved Model Risk Management Policy should address the following: • Define the duties and responsibilities of the BOD and Senior Management. • Detail acceptable practices for the following:

• Model Development • Model Implementation • Model Use

• Ongoing Monitoring • Change Management • Outline Model Validation Activities and Requirements


Made with FlippingBook - Online Brochure Maker