Objectives On completion of this tutorial, you will be able to:

• Identify regulatory approaches to model risk management (MRM)
• Recognize the importance of model identification, model risk rating, and model inventories
• Identify key model risk roles, responsibilities, policies, and procedures in MRM
• List the different stages of the model risk lifecycle and recall how risk is managed at each stage
• Recognize ongoing issues and challenges in MRM, such as data quality/quantity, technological challenges, fraud, and an ever-changing external environment

Tutorial Overview Model risk is the potential for adverse consequences from model errors or the inappropriate use of modelled outputs to inform business decisions. This tutorial looks at how banks can manage model risk and keep it within risk appetite by putting a robust model risk management (MRM) and governance framework in place. Prerequisite Knowledge Model Risk - An Introduction Tutorial Level: Intermediate Tutorial Duration: 45 minutes