Independent Director — Banking Model Risk and Decision Integrity

Where the bank relies on models

Examine how significant models are identified, prioritised and assigned accountable owners. Challenge the treatment of limitations, overrides and changes in data or operating conditions. Ask whether users understand what a model can and cannot support, and whether uncertainty is communicated in the decisions that reach the board.

Analytical literacy with governance judgement

Candidates should have substantial senior banking risk, finance, analytics or audit experience with exposure to model-based decisions. They must be able to engage with specialists and translate limitations into questions about capital, customers and operational risk. Experience challenging inappropriate reliance on a model is particularly valuable.

Applicants need financial literacy, intellectual independence and comfort with uncertainty. A technical qualification may be helpful, but the role requires governance judgement rather than technical credentials alone.

The appointment requires banking and analytical judgement, but it is not a model-development or validation position. The director will challenge the adequacy of management's framework and the quality of independent assurance rather than attempt to replicate technical testing.

Independent assurance and correlated limitations

Review validation independence, remediation capacity and the handling of overdue findings. Assess the consequences of relying on vendor models or shared data sources. Require clarity where multiple models create correlated exposure or where apparently separate decisions depend on the same fragile assumption.

Business consequences of reliance

The director should connect model governance with strategy and incentives. Rapid growth or product change can create pressure to use a model beyond its demonstrated range. Board reporting needs to show material reliance and limitations in terms of business consequences, not only technical classifications.

The director will help the board understand where model reliance is material, whether assurance is credible and what action is needed when limitations matter. Appointment-specific eligibility, independence and approvals will be assessed. Management retains responsibility for model operation and use. Success is better informed decision-making, including explicit recognition of uncertainty, instead of treating a precise numerical output as evidence that the underlying judgement is settled.