Hopes, fears and ‘mass confusion’: the sudden end of SR 11-7
Banks welcome chance to prioritise model reviews, but fret over future policy changes and AI
One of the largest industry groups lobbied to get rid of it. Model risk managers wanted to save it. But when US regulators’ 2011 guidance on model risk management was actually replaced on April 17 this year, it seems to have come as a shock to the banking sector.
“Long story short, right now, everybody is in a state of mass confusion, because nobody knows what to do,” says a model risk executive at
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