The US Federal Reserve and Office of the Comptroller of the Currency (OCC) have issued "Supervisory Guidance on Model Risk Management," which is intended for use by banking organizations and supervisors as they assess management of model risk. It expands on prior model guidance that focused on model validation, addressing sound development, implementation and use of models as vital elements. Furthermore, model risk management encompasses governance and control mechanisms such as board and senior management oversight, policies and procedures, controls and compliance, and an appropriate incentive and organizational structure.
Irrespective of where you are however, this guide has universal application and provides comprehensive guidance on effective model risk management. Many of the activities described in this document are common industry practice.
You can download it HERE.
