Model Risk Management Framework

Introduction

It has been more than 14 years since the publication of Supervisory Guidance on Model Risk Management, issued jointly by the Federal Reserve in SR 11-7 and the Office of the Comptroller of the Currency in OCC (Bulletin 2011- 12). In that time, the largest banks have dramatically improved their model risk management (MRM) programs by increasing the number and skill sets of those involved in model risk management, enhancing policy and procedure, and improving t…