Model Risk Management Resources

Model Risk Management Resources

Office of the Comptroller of the Currency (OCC) Supervisory Guidance on Model Risk Management
The Office of the Comptroller of the Currency (OCC) adopted this Supervisory Guidance on Model Risk Management. This guidance, was developed jointly with the Board of Governors of the Federal Reserve System, articulates the elements of a sound program for effective management of risks that arise when using quantitative models in bank decision making.  

Guidance on Model Risk Management from the Board of Governors
Memo from the Board of Governors of the Federal Reserve System to The Officer in Charge of the Supervision at each Federal Reserve Bank, dated April 4, 2011, relating to the issuance of the Supervisory Guidance on Model Risk Management.  

Letter from the FDIC
Letter from the FDIC (Federal Deposit Insurance Corporation) issued in June 2017 regarding its adoption of the Supervisory Guidance on Model Risk Management previously issued by the Board of Governors of the Federal Reserve System ("FRB") (SR 11-7) and the Office of the Comptroller of the Currency ("OCC") (OCC Bulletin 2011-12), with technical conforming changes, thereby making the guidance applicable to certain FDIC-supervised institutions.

PRA Paper on Model Risk Management for Stress Testing
There is no equivalent OCC guidance from the PRA (the Prudential Regulation Authority). The PRA is part of the Bank of England. However, the PRA has released a paper on model risk management for stress testing but not for model risk management in general. Notwithstanding, we understand that it is expected that a more general MRM guidance will be issued in future, following the principles set out in the stress testing paper.  

Guidance on the Development, Evaluation, and Application of Environmental Models
Guidance dated March 2009 was prepared in response to a request by the U.S. Environmental Protection Agency (EPA) Administrator that EPA’s Council for Regulatory Environmental Modeling (CREM) help continue to strengthen the Agency’s development, evaluation, and use of models.