Interagency Supervisory Guidance on Model Risk Management
A summary of changes in regulatory guidance
On April 4, 2011, the Office of the Comptroller of the Currency (the “OCC”) and the Federal Reserve adopted OCC 2011-12/SR 11-7: Supervisory Guidance on Model Risk Management. The statement describes the elements of a sound program for the management of risk where quantitative models are used; it also provides guidance over prudent model risk management policies, procedures, practices, and standards
This paper provides a summary of the interagency guidance on model risk management, focusing primarily on changes from guidance that existed previously.
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