Model Risk Management Survey 2023

About this survey

Between April and August 2023, PwC conducted an in-depth survey centred around Model Risk Management (MRM). The respondents consisted primarily of banks and insurance companies contacted via connections from the PwC internal network. We have collected complete answers from 26 respondents from various institutions.
These institutions are geographically distributed, with a significant presence in Western Europe 13 (50%), followed by CEE 4 (15%), Asia 3 (12%), Middle East 1 (4%), South America 1(4%) and Canada 1 (4%). 3 (12%) respondents chose not to disclose their geographical location. These organisations were stratified based on various attributes, such as the number of risk-relevant models, including institutions with a few (0-20) up to those with many (100+). The survey brings a diversity of collected answers and provides a comprehensive view on MRM areas that were the focus of the analysis.

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In these turbulent times, marked by high inflation and the Russian war in Ukraine, risk managers face a significant challenge in developing and maintaining sound model risk management practices. Furthermore, they need to adapt to the regulatory requirements introduced by many supervisory bodies worldwide. For example, the European Central Bank (ECB) has designed guidelines on regulatory models and their governance. The Prudential Regulation Authority (PRA), in its Supervisory Statement, seeks to enhance MRM frameworks and the operational resilience of the banks.

Another evolving factor in model risk management is the use of Artificial Intelligence (AI) and Machine Learning (ML). Utilising AI tools and advanced ML algorithms can increase efficiency and improve model performance, respectively. Implementing such technological advancements is a rather challenging exercise, which, if done incorrectly, can be quite costly.

Last year, our research focused on understanding the various MRM frameworks implemented by the respondents, as well as on model lifecycle and model taxonomy.

This year, we have put increased focus on two emerging trends:

  • How financial institutions approach risk tiering
  • The integration of AI and ML into existing MRM practices.

You will find valuable insights in this report, which could help you enhance the current MRM practise in your organisation. We would like to thank all the respondents for their valuable time and answers.

Rostislav Černý

rostislav cerny


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Previous issues

model risk management survey

Model Risk Management Survey

Download complete April 2022 Survey report.



Rostislav Černý

Rostislav Černý

Risk Management & Modelling, PwC Czech Republic

Tel: +420 775 176 782

David Dolejší

David Dolejší

Financial Risk Modelling, PwC Czech Republic

Tel: +420 731 282 814

Jan Bílek

Jan Bílek

Risk Management & Modelling, PwC Czech Republic

Tel: +420 724 085 870