Regulatory Alerts2026-04-17 | FIL-15-2026Interagency Supervisory Guidance on Model Risk Management
The OCC, Federal Reserve Board, and FDIC have issued revised supervisory guidance establishing a risk-based framework for managing model risk across the banking sector. The agencies require banking organizations, particularly those with over $30 billion in assets, to implement tailored governance, validation, and monitoring practices that align with each model’s complexity, purpose, and exposure. The framework emphasizes clear accountability, effective independent challenge, comprehensive third-party vendor oversight, and lifecycle documentation to ensure models remain reliable and fit for their intended business use.
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