Author: Adrian Maconick, Director of UK Sales and Marketing

The Prudential Regulatory Authority (PRA) has issued a new supervisory statement (SS) – “Model risk management principles for banks” in May 2023. It sets out the PRA’s expectations for banks model risk management (MRM) and is effective from 17 May 2024. Banks will need to move quicky to have revised MRM processes in place by then.

The SS applies to all regulated UK-incorporated banks, building societies, and PRA-designated investment firms.