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      Our clients rely on robust, explainable models to make critical decisions and meet regulatory expectations.

      In an Al-driven world, models to predict outcomes, assess risk, automate decisions and optimise performance enable high-impact decisions to be made at speed and scale. Without effective Model Risk Management (MRM), organisations face regulatory non-compliance, financial loss, strategic misdirection, reputational damage and reduced trust from customers and regulators.

      They need models and governance frameworks they can trust. Robust, explainable, compliant, and an adviser who can span the full lifecycle with deep technical and regulatory insight. With deep technical capability and cross-industry insight, we help organisations build sharper, explainable models, strengthen MRM and stay ahead of regulatory expectations and advances in AI.

      Andrew Fulton

      Partner, Regulatory and Risk Advisory

      KPMG in the UK



      Propositions

      Model risk

      • Gap analysis against Model risk regulatory requirements (SS1/23)
      • Support on your Deterministic Quantitative Methods (DQMs) journey
      • ·Enhancing MRM including model development, validation, governance and reporting

      Managed services

      • Outsourced modelling and risk functionality
      • Independent validation
      • Model risk management
      • Modelling platform solutions using SAS, Python, R and cloud platforms
      • Advanced AI tooling POC and implementation (e.g. self-assessments, SAS to python migration)

      Credit risk

      • Model development, validation, implementation and internal audit of credit risk models
      • Credit risk management framework
      • Credit risk transformation
      • Internal Ratings-Based (IRB) model development and calibration for Basel 3.1 compliance
      • IFRS9 expected credit loss (ECL) modelling and post-model adjustment frameworks

      Traded risk

      • Model development, validation, implementation and internal audit of market and counterparty risk models
      • Market risk management framework
      • Traded risk transformation
      • Model and calculation template development

      AI governance

      • AI model risk and validation
      • AI governance frameworks
      • Adherence to relevant standards
      • AI model monitoring

      Climate risk

      • Climate risk scenario analysis, stress testing and modelling
      • Regulatory gap assessment, action plan and remediation
      • Model validation


      Our modelling and MRM insights

      Strengthen modelling and model risk management with expert-led, AI-enhanced managed services built to evolve as regulatory, governance and technology expectations change.

      Time to rebuild more agile and dynamic strategic capabilities

      No time to lose on enhanced expectations for firms.

      Setting the calibration period and level for non-mortgage portfolios

      Why AI governance can’t be an afterthought

      Understand, adapt and optimise


      PRA CP10/25 – Governance and validation at the forefront

      The evolution of model risk management

      Enhancing capabilities in uncertain times

      Our people



      MTD

      Get in touch


      Discover why organisations across the UK trust KPMG to make the difference and how we can help you to do the same.