A major advancement in risk management among large financial institutions has been the development of internal risk models. The models encompass institutions’ procedures and techniques for assessing ...

There are two main methods of calculating the solvency capital requirement (SCR) under Solvency II, the “standard formula” and “internal model” methods: (a) The standard formula method, as its name ...

The PRA’s new supervisory statement extends banks’ model risk management obligations “across all models” - not just capital and stress testing. What steps must banks take to comply? Despite last ...

Does your board really care about model risk? Not in the abstract, or in carefully scripted assurances that governance is robust and controls are strong. The better question is whether the board, and ...

Against a background of increasing reliance on models and scenario analysis to assess future risks, the UK’s bank regulator, the Prudential Regulation Authority (“PRA”), has published a supervisory ...

Effective risk attribution should be directly aligned with the underlying investment process to ensure relevance and actionable insights. Our research demonstrates how risk attribution can be aligned ...

Modern model risk management startup Ethos AI Inc. announced today that it has raised $6 million in new funding to expand its engineering team, enhance its go-to-market efforts and strengthen its ...

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Senior model risk executives at US banks are at odds with a leading industry trading association over the future of cornerstone guidance issued by the US Federal Reserve more than a decade ago. Last ...

MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) is proposing regulations that would help financial institutions manage risks emanating from their reliance on models for critical business ...