The RMA Model Risk Framework for Medium-Size and Small Banks

Introduction

It has been more than a decade since the publication of the Supervisory Guidance on Model Risk Management by the Federal Reserve, known as SR-11-7, and its companion guidance from the OCC (OCC 2011). 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 technology to make mod…