Model risk management (MRM) continues to be a key concern across the financial services sector.

The widespread use of complex models across financial services organisations and the subsequent risk that inadequate design or implementation could pose to the safety of firms and their financial stability has led to elevated scrutiny from regulators. Their aim is to strengthen the governance and understanding of model risk.

This rapidly changing and rigorous regulatory environment has increased the demand on organisations to demonstrate robust management of model risk.

Key dates

arrow right icon17 May 2024: SS1/23 implementation deadline for in-scope banks, building societies, and designated investment firms

arrow right icon1 July 2025: UK implementation of Basel 3.1, including the Fundamental Review of the Trading Book (FRTB)

Get in touch
Partner, Business Risk Services, Financial Services Group
Rob Benson
Rob Benson
Partner, Business Risk Services, Financial Services Group
Rob Benson

How we can help

Our market-driven model risk experience can help your management team understand your models and provide assurance that they're being used for the purpose for which they were intended. We have a successful track record providing a broad range of MRM services to our clients.

While building MRM frameworks will need a different approach for each firm, we've identified the best ways to support, including:

  • MRM framework: developing structured and robust frameworks
  • MRM maturity assessment: a tool for evaluating an organisation’s progress toward its model risk management goals
  • Model development services: specialist resources to support your model development activities
  • Model validation services: confirming that an institution’s model is aligned with business and regulatory expectations
  • Model implementation/change services: developing or enhancing model implementation processes and controls, as part of a wider model risk management framework
  • Controls and governance services: support in the design of model risk-appetite statement and associated model risk lifecycle policies, standards, and procedures, including model change control procedures
  • Data: supporting data management, data science solutions, data analytics, and predictive modelling
  • Resource augmentation: additional specialist resources to help the existing team
  • S166 and S166 preparations


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