Beyond strengthening governance, PS6/23 and SS1/23 introduce key changes, including:
- Financial reporting expectations – MRM teams must provide structured risk assessments to audit committees.
- Senior management accountability – Organizations need clear oversight roles for Model Risk Management.
- Future-proofing for AI & ML models – Teams must ensure advanced analytics meet regulatory standards.
- Expanded scope to non-traditional models – Inventories must account for risks from deterministic quantitative methods and End-User Computing (EUC) tools.
As the industry adapts to these new standards, firms must take a strategic approach to model risk by embedding robust frameworks that
ensure compliance, enhance resilience, and support long-term growth. Get started with a better understanding of the 5 principles today.