Glossary
SR 11-7
The Fed/OCC supervisory guidance on model risk management.
SR 11-7 is the Federal Reserve and OCC's supervisory guidance on model risk management. It expects firms to maintain a complete model inventory, validate models independently, monitor them on an ongoing basis, and document them well enough for effective challenge.
As firms adopt LLMs in decision-relevant workflows, those models fall within SR 11-7's scope — bringing inventory, monitoring, and documentation obligations with them.