SR 11-7

This policy has provided comprehensive guidance on effective model risk management. Many of the activities described in this policy are common industry practice.

Organizations may also ensure that they maintain strong governance and controls to help manage model risk, including internal policies and procedures that appropriately reflect the risk management principles described in this guidance.

Details of model risk management practices may vary from organization to organization, as practical application of this guidance should be commensurate with an organization’s risk exposures, its business activities, and the extent and complexity of its model use.