Large Bank Examination Workshop February 2026

What is a Model?

‘A model generally refers to a methodology, system, and/or approach that applies theoretical and (expert) judgmental assumptions and statistical techniques to process input data in order to generate quantitative estimates.’

Source: Office of the Superintendent of Financial Institutions (Canada), Enterprise-Wide Model Risk Management for Deposit-Taking Institutions, September 2017.

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Inputs

Processing Economic Financial Mathematical Statistical

Outputs Estimates Forecasts Decision Support Control

Data Assumptions Scenarios

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