Large Bank Examination Workshop February 2026

Modification • Models that perform poorly or become obsolete will be modified or decommissioned. Control of this process is essential.

• Modifications should be subject to the same level of vetting and validation as is involved with new model approval.

• No-one should have the authority to change a model or its use without re-approval through an appropriate process.

• Model changes should be carefully documented and justified.

49

Decommission • Decommissioning is not the end of the model risk lifecycle. • Recently decommissioned models may act as benchmarks for new models, and could be re-commissioned if the new model is not properly implemented to does not perform as expected.

50

25

© Global Financial Markets Institute Inc.