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The PRA defines a as any quantitative method or system that applies theories and assumptions to process input data into output. Principle 2: Governance

While the statement was finalized in 2023, the foundation was laid in through the CP6/22 Consultation Paper. Most firms were expected to have implemented these principles by May 2024. SS1/23 – Model risk management principles for banks

When models have known limitations, firms should use Post-Model Adjustments (PMAs) to account for latent risks. Implementation Timeline

Firms should establish a robust board-level framework for model risk.

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The PRA defines a as any quantitative method or system that applies theories and assumptions to process input data into output. Principle 2: Governance

While the statement was finalized in 2023, the foundation was laid in through the CP6/22 Consultation Paper. Most firms were expected to have implemented these principles by May 2024. SS1/23 – Model risk management principles for banks

When models have known limitations, firms should use Post-Model Adjustments (PMAs) to account for latent risks. Implementation Timeline

Firms should establish a robust board-level framework for model risk.