Large Bank Examination Workshop February 2026

Risk Criterion

Score

Comments

Ease of model replication

Vendor Models

1 =< 1 month 3 =< 3 months 5 =< 6 months

7 =< 1 year 10 > 1 year 1 = Internal Models

Risk Metrics 1 = No 10 = Yes Purchase/Sale decisions 1 = No 10 = Yes On-top adjustments materiality

1 = No adjustments 10 = significant adjustments

Each model’s total risk score, in conjunction with its mission criticality, is used to determine the model classification and thus the frequency and scope of validations, subject to the results of model reviews. Models are classified as High Priority (HP), Medium Priority (MP) or Low Priority (LP), the determination of which is based on the total score in relation to the following table:

Mission Critical

Non-Mission Critical

Score Ranges

Low High

Low High

Low Priority

9

29 50 90

9

37 64 90

Medium Priority

30 51

38 65

High Priority

13

Model Risk Management Policy

March 15, 20XX

Classification: Confidential

Page 39 of 39