Model Risk Management
In a world where banks, regulators, and financial institutions rely on models more than ever, understanding model risk is no longer optional… it’s essential. This in-depth course on Model Risk Management is designed for finance professionals who work with or govern models and want to stay ahead of regulatory expectations, emerging technologies, and evolving best practices. Covering the full model lifecycle, from development and validation to governance, monitoring, and AI oversight, you’ll gain practical tools, strategic insight, and global context, with a strong focus on UK PRA SS1/23 and how it aligns with international frameworks. Whether you’re in risk, audit, compliance, analytics, or leadership, this course will equip you to lead confidently in a model-driven world.
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Introduction
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Course Introduction
In this introductory session, you’ll set the foundation for your journey into model risk management. You’ll discover why models have become central to modern banking—and why managing the risks they pose is now a critical priority for regulators and institutions worldwide. With a practical, globally focused approach, this session outlines what to expect from the course and how it will help you navigate, lead, and add value in a model-driven environment.
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Get The Most Out Of The Course
Each lesson includes a step-by-step video and a downloadable PDF worksheet to track progress and reinforce key insights. Need support? The Industry Portal is here to help. Stay organised, engage with the materials, and set aside dedicated study time to maximise your results. The more effort you invest, the greater the value you’ll gain.
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Module 1
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Session 1: Understanding Model Risk in Modern Banking
In this session, you’ll explore what model risk means in today’s financial world—and why it’s now a top priority for banks and regulators. You’ll trace its rise through events like the 2008 crisis and see how frameworks like the UK’s PRA SS1/23 are reshaping how firms manage oversight, governance, and accountability.
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Session 2: Global Regulatory Frameworks for Model Risk Management
In this session, you’ll explore how global regulators approach model risk, with a focus on the UK’s PRA SS1/23, the US’s SR 11-7, and the ECB’s TRIM. You’ll compare regional expectations and learn how firms manage cross-border complexity through global-local frameworks to ensure compliance and consistency.
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Module 2
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Session 3: The Lifecycle of a Model: From Development to Retirement
In this session, you’ll follow the full lifecycle of a model—from development and validation to deployment, monitoring, and retirement. You’ll learn how each stage presents unique risks and why managing the lifecycle as a whole is key to maintaining control, performance, and compliance.
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Session 4: Model Validation and Independent Review
In this session, you’ll dive into model validation and discover how independent review ensures models are sound, reliable, and fit for purpose. You’ll explore how validators test assumptions, data, and performance—and why rigorous, objective validation is critical to reducing risk and meeting regulatory expectations.
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Session 5: Monitoring Models in Production: Performance and Controls
In this session, you’ll learn how banks monitor model performance in production to detect drift, errors, and unexpected behaviour. You’ll explore key metrics, alert thresholds, and issue management practices that keep models accurate, reliable, and aligned with changing real-world conditions.
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Module 3
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Session 6: Governance Structures for Model Risk Oversight
In this session, you’ll explore how strong governance frameworks support model risk management across the enterprise. You’ll learn how roles, responsibilities, and committees work together to ensure clear accountability, effective challenge, and informed decision-making at every level.
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Session 7: Building and Managing a Model Inventory
In this session, you’ll discover how a centralised model inventory helps firms track, govern, and prioritise their models. You’ll learn what information should be captured, how models are classified by risk, and why a complete, accurate inventory is essential for effective oversight and regulatory compliance.
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Session 8: Change Management in the Model Lifecycle
In this session, you’ll explore how change management keeps models accurate and controlled as they evolve. You’ll learn how firms govern updates, assess materiality, manage versioning, and retire outdated models—all while maintaining transparency, accountability, and regulatory alignment.
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Module 4
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Session 9: Defining and Measuring Model Risk Appetite
In this session, you’ll learn how firms define and manage model risk appetite to align model use with business goals and regulatory expectations. You’ll explore key metrics, thresholds, and governance practices that help quantify exposure and drive informed, risk-aware decisions.
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Session 10: Building Effective Model Risk Teams and Operating Models
In this session, you’ll explore how firms build effective model risk teams and operating models. You’ll learn about key roles, skills, and structures—along with how centralised, federated, and hybrid approaches support scalable, collaborative, and regulator-ready model risk management.
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Module 5
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Session 11: Real-World Case Studies and Lessons from Model Failures
In this session, you’ll examine real-world model failures and the lessons they reveal. From financial crises to AI bias and governance breakdowns, you’ll see how poor oversight and unchecked assumptions lead to costly outcomes—and how strong model risk management can prevent them.
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Session 12: The Future of Model Risk Management
In this session, you’ll look ahead to the future of model risk management. You’ll explore trends like AI governance, real-time modelling, regulatory convergence, and ESG. Learn how firms are evolving their frameworks to stay resilient, innovative, and compliant in a rapidly changing world.
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Course FAQ
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This course is ideal for professionals in financial services who work with or oversee models. It’s designed for model risk managers, quants, risk and compliance officers, internal auditors, and senior stakeholders. Whether you're technical or non-technical, you'll gain practical insight into model governance, validation, and regulatory expectations. No advanced maths required—just a solid interest in managing risk effectively.
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This course provides a comprehensive overview of model risk management, including:
Model Lifecycle: Development, implementation, use, monitoring, and retirement.
Model Validation: Independent review and challenge techniques.
Performance Monitoring: Ongoing tracking of model accuracy and stability.
Governance: Roles, responsibilities, and committee structures.
Model Inventory Management: Building and maintaining a complete model register.
Change Control: Managing model updates and documenting changes.
Risk Appetite: Defining, measuring, and applying model risk limits.
Team Structures: Designing effective model risk functions and operating models.
Case Studies: Real-world examples of model failures and lessons learned.
Emerging Trends: AI governance, regulatory developments, and future challenges.
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By completing this course, you will:
Understand Model Risk: Grasp what model risk is and why it matters in modern finance.
Apply Regulatory Standards: Learn how global regulators approach model governance and compliance.
Manage the Model Lifecycle: Know how to oversee models from development to retirement.
Validate Models Effectively: Gain practical skills in independent model validation and review.
Monitor Model Performance: Set up robust monitoring processes to catch issues early.
Implement Strong Governance: Design clear structures for accountability and oversight.
Build Risk-Aware Teams: Understand the roles needed for effective model risk control.
Respond to Failures: Learn from real-world case studies to avoid common pitfalls.
Prepare for the Future: Stay ahead of trends like AI, real-time modelling, and new regulations.
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The course is organised into 12 clear and progressive sessions, each focusing on a key aspect of model risk management:
Session-based Format: Each session builds on the last, taking you from fundamentals to advanced concepts.
Real-World Examples: Practical insights and case studies are included throughout.
Thematic Flow: Covers the full lifecycle—development, validation, monitoring, governance, and future trends.
Professional Tone: Designed for finance professionals, with a balance of technical depth and accessible language.
Self-Contained Sessions: Each topic is covered in a standalone session, allowing for flexible learning.
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The course consists of 12 in-depth sessions, each taking approximately 45 to 60 minutes to complete. It’s designed to be self-paced, allowing you to progress on your own schedule—whether you prefer weekly sessions or a more intensive approach. It’s flexible enough to fit around professional or personal commitments.
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No formal prerequisites are required. However, a basic understanding of banking, finance, or risk management will help you get the most out of the course. It’s designed to be accessible to professionals at all levels, from those new to model risk to those seeking to deepen their expertise.
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This course goes beyond theory by combining real-world case studies, practical insights, and up-to-date regulatory context. It’s designed specifically for finance professionals, with a focus on clarity, relevance, and applicability. Each session delivers structured, standalone content—making complex topics easy to grasp and immediately useful in practice.
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This course is ideal if you’re involved in developing, validating, using, or overseeing models within banking or financial services. Whether you’re a risk analyst, model validator, auditor, compliance professional, or a senior leader, you’ll benefit from a clear, structured understanding of model risk management. If you're looking to build confidence in navigating regulatory expectations, enhance your governance frameworks, or improve your team's approach to model oversight, this course is a strong fit.
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Yes! Many organisations sponsor professional development courses. Feel free to request a detailed course brochure or contact us for an employer-ready outline to share with your manager or HR team.