The evolution of model risk management

May 2013


More than ten years since the OCC issued its seminal OCC 2000-16 Risk Bulletin on Model Validation, a revised and significantly expanded set of supervisory guidance was co-issued by the OCC and the Federal Reserve in April 2011. While the exact reasons for this revised guidance are not publicly known, it is likely that the Agencies were reacting to observed systemic weaknesses in bank model risk management programs under the prior guidance.

This A Closer Look discusses what the new model risk management guidance means holistically for banks and provides a high-level roadmap for evolving the model risk management function.

Contact us

Dan Ryan
US Banking and Capital Markets Leader
Tel: +1 (646) 471 8488

Alison Gilmore
US Asset and Wealth Management Marketing Leader
Tel: +1 (646) 471 0588