Capital Markets School - October 2023

Internal Use Only

SR 11-7: Guidance on Model Risk Management

Between FRB & OCC

April 4, 2011

Applied to banking organizations supervised by FRB – considering the size, nature & complexity, and extent & sophistication of its use of models

5

Internal Use Only

SR 11-7: Guidance on Model Risk Management Typically only applied to largest banks Most banks do not own models

Model Development, Implementation & Use

Validation & Governance

6