Large Bank Examination Workshop February 2026

Development / Procurement

Testing

Validation

Deployment / Implementation

Maintenance

Performance Tracking, On-going Monitoring, Periodic Validation

Timely Upgrade / Replacement

D.

Model Accuracy Standards and Performance

Each mission critical model owner is responsible for establishing, monitoring and reporting on model performance metrics. The reasonableness of the performance metrics and related thresholds established will be reviewed by the Model Risk Management Group.

E.

Model Reviews, Assessments and Validations

(1)

Model Reviews

Reviews of the Model Inventory, the applicable Model Description and the components of the applicable model’s classification will be conducted by Model Risk Management, with support from model owners and/or users. Information will be reviewed for relevance and accuracy and updated as warranted. The focus of model reviews will be on internal and external changes that have occurred since the last validation.

(2)

Model Assessments

Model assessments incorporate the results of model reviews and attempt to evaluate the extent to which the level and trend of risk has changed and

6

Model Risk Management Policy

March 15, 20XX

Classification: Confidential

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