Revised Guidance on Model Risk Management (SR 26-2 / OCC Bulletin 2026-13)

Summary

On April 17, 2026, the Federal Reserve, OCC and FDIC issued joint revised model risk management guidance. It replaces SR 11-7 (2011) and SR 21-8 (2021) and rescinds OCC Bulletins 2011-12, 1997-24 and 2021-19 and the Comptroller's Handbook Model Risk Management booklet. The approach is risk-based: model purpose combined with model exposure determines materiality, and the rigor of testing, validation and monitoring scales with materiality. Immaterial models may only need to be identified and monitored. For vendor models, sound practice includes developing an understanding of the model and conducting ongoing monitoring and outcome analysis. The guidance sets no enforceable standards, and non-compliance will not result in supervisory criticism. It is expected to be most relevant to banking organizations with over $30 billion in assets. Generative and agentic AI models are expressly outside its scope as 'novel and rapidly evolving'. Spreadsheet arithmetic and deterministic rule-based processes are excluded from the definition of a model. The agencies plan a request for information on model risk management and banks' use of AI, including generative and agentic AI.

Key dates

1. April 17, 2026Issued
2. April 17, 2026Takes effect
3. October 16, 2026Checked against sources
4. October 21, 2026Checked against sources

Developments are added when the record is reviewed. Next review: January 15, 2027.

Evidence

Each passage is quoted from its source. The quoted passages are re-checked against the live pages every month.

1. are issuing the attached Revised Guidance on Model Risk Management , which supersedes and replaces SR letter 11-7, Guidance on Model Risk Management (issued April 4, 2011) and SR letter 21-8

   Supports: Supersedes SR 11-7 and SR 21-8

   SR 26-2: Revised Guidance on Model Risk Management Board of Governors of the Federal Reserve System Primary source

2. OCC Bulletin 2026-13 | April 17, 2026 Model Risk Management: Revised Guidance

   Supports: Bulletin number and date

   Generative AI and agentic AI models are novel and rapidly evolving. As such, they are not within the scope of this guidance. Furthermore, this guidance is expected to be most relevant to banking organizations with over $30 billion in total assets.

   Supports: AI scope exclusion and $30bn threshold

   This guidance does not set forth enforceable standards or prescriptive requirements; accordingly, non-compliance with this guidance will not result in supervisory criticism against a banking organization.

   Supports: No supervisory criticism

   the agencies plan to issue in the near future a request for information that addresses model risk management generally and considers, in particular, banks’ use of AI, including generative AI and agentic AI and AI-based models.

   Supports: Planned RFI

   OCC Bulletin 2026-13, Model Risk Management: Revised Guidance Office of the Comptroller of the Currency Primary source

3. Model purpose, together with model exposure, determines model materiality.

   Supports: Materiality approach

   Sound practice includes developing an understanding of the

   Supports: Vendor models: develop understanding

   sound practice involves conducting ongoing monitoring and outcome analysis to assess whether vendor models are accurate, remain fit for purpose, and continue to be reliable.

   Supports: Vendor models: ongoing monitoring

   Model Risk Management: Revised Guidance (interagency guidance attachment) OCC / Federal Reserve / FDIC Primary source