A new booklet, “Model Risk Management,” has been added to the Safety and Soundness series of the Comptroller’s Handbook, which is published by the Office of the Comptroller of the Currency (OCC) for use by examiners in their examination and supervision activities.
In a bulletin Wednesday, the OCC said the booklet:
- presents the concepts and general principles of model risk management;
- informs and educates examiners about sound model risk management practices that should be assessed during an examination; and
- provides information needed to plan and coordinate examinations on model risk management, identify deficient practices, and conduct appropriate follow-up.
An online overview of the new examiner guidance states the booklet “and aligns with the principles laid out in “Supervisory Guidance on Model Risk Management” conveyed by OCC Bulletin 2011-12.”
The agency said examiners can use the booklet “as a guide in performing consistent, high-quality model risk management examinations.”