Executive summary

In this paper, we explore and compare the state of model risk management (MRM) guidelines for banks and financial institutions (FIs) in the Asia-Pacific (APAC) region. It is presented as a comparative study of regulatory frameworks around model risk compared with mature peers, such as the United States (US), the United Kingdom (UK) and the European Union. The aim is to highlight existing model risk frameworks of banks and FIs in APAC and discuss refinement of guidelines for a holistic approach to MRM. We also define a set of general guidelines that firms can adhere to when building their MRM frameworks and suggest process enhancements for efficiency gains in the long run.