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Models must undergo rigorous testing during development to ensure they are fit for purpose.
A designated Senior Management Function (SMF) must be accountable for the MRM framework. Download Ss123 2022 zip
When models have known limitations, firms should use Post-Model Adjustments (PMAs) to account for latent risks. Implementation Timeline Models must undergo rigorous testing during development to
A team independent from the model developers must perform a critical review of the model’s performance and assumptions. Download Ss123 2022 zip