Bridging the Gap: How ValidMind Helps Banks Respond to the PRA’s SS1/23 Findings
The UK’s Prudential Regulation Authority (PRA) has reaffirmed Model Risk Management (MRM) as a supervisory priority for 2025, with a recent thematic review uncovering significant gaps across the banking sector’s implementation of Supervisory Statement 1/23 (SS1/23). The message is clear: banks must act swiftly to remediate shortcomings and establish robust MRM frameworks that meet regulatory expectations.
As banks mobilize around their remediation plans already shared with boards and the PRA, ValidMind stands ready to accelerate progress and dramatically shorten the path to compliance.
Key Gaps Identified in the PRA’s July 2025 Thematic Review
Despite progress, the PRA found that most banks:
- Are operating with incomplete or inaccurate model inventories
- Have yet to vet and implement robust risk tiering methodologies
- Conduct inconsistent validation that doesn’t align with model risk levels
- Lack formalized oversight and control mechanisms for MRM
- Exhibit over-reliance on Post Model Adjustments (PMAs) with limited governance or auditability
Many institutions are estimating that remediating these gaps could take years, but with the right tooling and guidance, that doesn’t have to be the case.
How ValidMind Fast-Tracks MRM Remediation
ValidMind’s model risk platform is purpose-built to help banks close their SS1/23 gaps faster than legacy approaches, enabling institutions to move from assessment to assurance in a matter of weeks or months, not years.
1. Rapid Implementation
- Configurable onboarding tools get banks live in record time
- Proven 60% faster time-to-value than competing platforms
2. Model Inventory Assurance
- Attestation tooling ensures inventories are complete, accurate, and regularly maintained
- Automatic classification of Models, AI Systems, and DQMs in line with SS1/23
3. Risk Tiering Done Right
- Out-of-the-box risk tiering methodology aligned with SS1/23 and best practices
- Easily customized to institutional policies
- Embedded in workflows to support the three lines of defense
4. Automated Validation & Documentation
- ValidChecker verifies that every validation and documentation artifact meets PRA expectations
- Model validation frequency and scope calibrated by risk tier
- Full traceability and audit logs for validation reviews and sign-offs
5. PMA Governance & Oversight
- Integrated PMA workflows bring control and accountability to Post Model Adjustments
- Automated reporting and auditability for board and SMF stakeholders
6. Governance Reporting for Boards & SMFs
- Purpose-built dashboards and reports for Board and SMF consumption
- Real-time visibility into model lifecycle, tiering, validation status, and PMA use
Related: 10 Key Takeaways from the ‘Navigating the PRA’s SS1/23‘ Event
A Strategic Partner for SS1/23 Compliance
Regulators have set the direction. Now, execution speed and effectiveness will determine which banks lead in MRM maturity.
MRM programs must be updated. Banks now face a critical strategic choice: either scale up manual, resource-intensive processes, or modernize with automation to reduce the cost and time associated with model validation, documentation, and monitoring.
This is not just a compliance obligation, it’s an opportunity to lay the foundation for responsible AI enablement.
ValidMind offers a scalable, configurable, and SS1/23 -aligned solution that not only addresses the current gaps but builds the foundation for sustained, future-proof compliance.
Want to see how ValidMind can close your SS1/23 gaps?
Contact us for a tailored demo or to learn how we’re helping top banks transform MRM at pace.
