Key activities
Model Risk Management apply to all firms that rely on models for decision-making, forecasting, or regulatory submissions. These expectations include:
A clearly defined MRM framework, including policy, ownership, and governance
A structured model lifecycle process - covering development, validation, implementation, and decommissioning
Independent validation of models based on risk and materiality
A centralised model inventory with clear documentation and version control
Ongoing performance monitoring and regular reviews
Board and senior management oversight of material model risks
We help small- and mid-sized banks implement these principles without the need for large in-house model risk teams, ensuring compliance and risk control without unnecessary burden, by undertaking the following activities:
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We begin by assessing your existing approach to model governance, documentation, validation, and oversight. We identify gaps against PRA guidance (SS1/23 and SS3/18), highlight regulatory risks, and prioritise areas for improvement.
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We work with your teams to design a proportionate, fit-for-purpose MRM framework. This includes:
Model classification and materiality assessment
Roles and responsibilities across the three lines of defence
Governance structures, approval processes, and escalation routes
Policy and procedural documentation aligned with regulatory principles
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We help you establish or enhance a centralised model inventory—capturing key details such as purpose, inputs/outputs, ownership, version history, risk ratings, and validation status. The inventory becomes a single source of truth for all model-related oversight.
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We provide independent review and validation services across a range of models used in capital, liquidity, credit, market, or behavioural risk. Our reviews assess design, assumptions, implementation, performance, and documentation—offering assurance to boards and regulators.
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We assist in embedding governance and control processes, including model approval, periodic review cycles, performance monitoring, and board-level reporting. We also support training and awareness-building to enhance the risk culture around model use.
What we offer
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End-to-end MRM framework development
We design and help implement a full MRM framework aligned with SS1/23 and SS3/18, tailored to your business model and internal capabilities.
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Model inventory and documentation support
We build or review your central model inventory and help you create or enhance key documentation, including model risk policies, validation reports, and governance templates.
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Independent model validation
We provide objective validation across capital, liquidity, IFRS9, IRRBB, behavioural, and stress testing models, assessing technical soundness, controls, and regulatory alignment.
Let’s get started
Interested in learning more about how we can support your bank? Whether you have specific requirements or just want to explore our services further, we’re here to help. Please feel free to contact us, and one of our experts will get in touch to discuss your needs and how we can assist
We look forward to working with you!
Why choose us
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We interpret and apply regulatory guidance from SS1/23 and SS3/18 to meet the proportional needs of small and mid-sized UK banks, ensuring compliance without overcomplication.
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We bring hands-on experience with the models you use every day, from ICAAP capital models to liquidity cash flow tools, IRRBB assumptions, and behavioural overlays.
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Our frameworks and templates are designed to be used, not shelved. We work with your teams to create processes that are efficient, understandable, and easy to maintain.
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We build the structure and documentation your board and regulators expect, providing audit trails, validation summaries, and clear ownership of model risk across the firm.
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We help you go beyond frameworks, embedding model risk awareness into your governance, training, and decision-making culture.