OCC Revises Model Risk Management Guidance for Banks

The OCC revised its Model Risk Management guidance, updating standards for bank model development, validation, and ongoing monitoring. Key changes address model governance frameworks, validation testing requirements, and oversight expectations for bank management and boards of directors.

Affected banks should review their current model risk management practices against the updated OCC guidance and implement necessary changes to align with the revised standards. Compliance officers should coordinate with model risk management, information technology, and business units to assess the impact on existing models and update internal policies accordingly.