Federal Reserve / OCC SR 11-7 Supervisory Guidance on Model Risk Management¶
| Regulator | Federal Reserve / OCC |
| Jurisdiction | Global |
| Status | live |
| Applicability | Platform |
The United States Federal Reserve and OCC joint supervisory guidance on model risk management, issued April 2011. Although a US instrument, SR 11-7 is the de-facto global template for model risk frameworks; APRA, RBNZ, PRA, and industry practitioners all reference it. The platform adopts SR 11-7 as an internal build standard alongside PRA SS1/23.
The three pillars¶
Pillar 1 — Robust development, implementation and use. Rigorous, documented development process; clear statement of purpose; sound theory supported by published research; documented data quality and relevance; thorough testing; controls over deployment and use.
Pillar 2 — Independent validation. Evaluation of conceptual soundness; ongoing monitoring; outcomes analysis including back-testing. Validation must be independent of development and use, proportionate to model materiality.
Pillar 3 — Governance, policies and controls. Board and senior-management oversight; model risk policy; comprehensive model inventory; clear roles and accountability; risk-tiering; defined validation frequency; documented findings and remediation.
The reconstruction standard¶
SR 11-7's single most demanding practical requirement: model documentation must be sufficiently detailed and clear that a knowledgeable third party could recreate the model from the documentation alone, without access to source code. This is the requirement machine-learning models most often fail, and it is the requirement the platform's evidence packs are designed to satisfy as a definition-of-done gate.
Platform adoption¶
The platform builds all model documentation, validation evidence, and monitoring tooling to satisfy SR 11-7 simultaneously with PRA SS1/23. This exceeds RBNZ and APRA requirements today and pre-positions for UK and Irish market entry.
Policies referencing this standard¶
Compiled 2026-05-22 from source/entities/regulations/industry-sr-11-7.yaml