The service should cover the following pillars:

• The Framework: Revising and enhancing the existing risk management framework for the Risk Function (PGRF) models, including prioritizing the risks of each model, extending it to cover all the African Development Fund (ADF) models and other models used in the Bank, but not directly in PGRF. The revised and extended Framework shall be in line with best practices outlining the principles and organizational arrangements (centralized MRM within a department or decentralized MRM within each department), governance bodies (model risk committee, based on existing committees as currently defined), the resource requirements, options (in-source/outsource/hybrid), and pros and cons for each of them.
• Models inventory: Update the existing model inventory which covers only models used within PGRF to capture all models used in other departments of the Bank. The risk related to each model which will lead to a definition of review frequency should be available in the updated model inventory.
• The MRM Tool: Recommend a model risk management tool to be developed or acquired by the Bank. Recommend appropriate operationalization of the MRM and tool across the Bank, including roles and responsibilities.
• The MRM Team: Assist in setting up a dedicated MRM team by defining its proper sizing according to the recommended operationalization approaches (in-source/outsource/hybrid, centralized vs. decentralized), its role and responsibilities. The Team will play an independent role in performing the monitoring of the MRM Framework. Assist in defining targets and indicators on compliance with the Bank’s Risk Model Governance Guidelines in the performance evaluation cycle for relevant staff.