Large Bank Examination Workshop February 2026

Roles and Responsibilities • Risk Committee that has a delegation of authority from the Board usually responsible to oversee the model validation process  Can report to Enterprise Risk Management  Usually an Operational Risk function • Independent of all business units operating and utilizing the models.

67

Committee Role • Review and approve validation procedures • Review and approve model inventory annually • Review and approve classification annually • Review and approve a schedule for validation • Approve the selection of validators • Review the progress and results of validation and report this to Board

68

34

© Global Financial Markets Institute Inc.