Large Bank Supervision Forum 2023

Model Inventory

• The bank’s centralized Model Inventory should contain the following:

• Date Implemented • Under Development • Recently Retired • Description of the Model’s Purpose • Restrictions on Use • Types and Sources of Inputs used by a given Model • Underlying Components of a given Model

• Model Outputs • Intended Use • Functioning Properly (Y/N) • Date Last Updated

• Name of Model Developer • Name of Model Validator • Dates of Planned and Completed Validation Activities • Time Frame when Validation will be Completed

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Third Party Models

• Regardless of whether a model is developed in-house or purchased, Model Risk Standards should be similar.

• Change management is critical.

• Vendor management is key.

• Third-Party validation risks need to be addressed.

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