Large Bank Supervision Forum 2023

Internal Audit’s Role in the MRM Process Responsible for the following:

• Verify Policies and Compliance • Verify Records of Model Use • Verify Records of Model Validation • Assessing Accuracy and Completeness of Model Inventory • Evaluating Model Usage Limits • Review Procedures for Updating Models • Test Documentation Standards including Risk Reporting • Perform Assessments of Supporting Operational Systems • Evaluate the Reliability of Data Used • Assess Adequacy of Model Validation Activities (Internal and External)

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