FDIC adopts guidance on model risk management

The FDIC has adopted the Supervisory Guidance on Model Risk Management previously issued by the Federal Reserve Board and the Office of the Comptroller of the Currency, with technical conforming changes, thereby making the guidance applicable to certain FDIC-supervised institutions. The guidance addresses supervisory expectations for model risk management, including: model development, implementation, and use; model validation; and governance, policies, and controls. The FDIC is adopting this guidance to facilitate consistent model risk-management expectations across the banking agencies and industry.

• FIL-22-2017