Tier 1 Global Bank – Model Risk Management

Basel-compliant solutions for Credit, Market, Model, IRRBB and Operational Risk regulatory requirements.

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Case Study: Tier 1 Global Bank – Model Risk Management

Context:

PRA SS1/23, specifies the model risk management (MRM) principles that UK banks must adopt. As a relatively new regulatory requirement in governance terms (2023), the client initiated a programme to understand the “what” was required to support ongoing compliance.

Client Challenges:

  • Inconsistent model governance across multiple jurisdictions
  • High number of models in scope (1000+)
  • Highly complex model validation processes, making evidencing compliance expensive and time-consuming.
  • Uncertainty regarding degree of compliance

Solution:

Introduction of and execution of Akkoda regulatory impact assessment tool, which quickly identifies models in scope, existing levels of compliance in addition to policy, process, data and technology compliance gaps, allowing users to quickly build a remediation delivery plan.

Outcomes:

  • Full traceability artefact from regulatory articles to bank compliance status, compliance evidence and mitigation in even of non-compliance.
  • Fully configurable delivery plan detailing, scope of delivery, resources required, estimated costs based on resource profiles and delivery timescales