It’s tough being a model risk manager these days. In the US, global investment banks and domestic lenders alike continue to grapple with prudential guidance on model risk management, known as SR 11-7. Meanwhile, their European counterparts recently began welcoming onsite inspectors under the European Central Bank’s Targeted Review of Internal Models (Trim) programme.
UK model teams also have their work cut out. At the end of March, the Bank of England issued a letter to British banks and buildi