Introduction to SR 11-7 Model Validation

Introduction to SR 11-7 Model Validation

Webinar Overview

This 45-minute recorded presentation provides a comprehensive introduction to SR 11-7, the foundational supervisory guidance on model risk management issued by the Federal Reserve and OCC in 2011 and adopted by the FDIC in 2017.

Perfect for institutions new to model validation or seeking to strengthen their MRM programs, this webinar breaks down complex regulatory requirements into practical, actionable guidance.

What You'll Learn

Understanding SR 11-7 Framework

• Origins and regulatory authority of SR 11-7
• Core principles of effective model risk management
• Applicability to different institution sizes and complexities
• Integration with other regulatory guidance

Three Pillars of Model Validation

1. Evaluation of Conceptual Soundness

   • Assessing model theory and methodology
   • Reviewing developmental evidence
   • Testing mathematical accuracy
   • Documenting assumptions and limitations

2. Ongoing Monitoring

   • Establishing performance metrics
   • Implementing process verification
   • Conducting benchmarking
   • Detecting model drift

3. Outcomes Analysis

   • Back-testing model predictions
   • Comparing to alternatives
   • Assessing business value
   • Learning from model performance

Validation Independence and Frequency

• Requirements for validator independence
• Appropriate validation frequency by model tier
• When to conduct off-cycle validation
• Balancing independence with resource constraints

Common Validation Findings

• Documentation deficiencies
• Data quality issues
• Inadequate monitoring
• Weak governance controls
• How to address and remediate findings

Who Should Attend

Primary Audience:

• Chief Risk Officers
• Model Risk Managers
• Model Owners and Developers
• Internal Validators
• Compliance Officers
• Internal Audit Staff

Also Valuable For:

• Board Risk Committee Members
• Senior Management
• Third-Party Validators
• Consultants Supporting Validation

Key Takeaways

By the end of this webinar, participants will be able to:

Explain SR 11-7's three-pillar validation framework Identify key validation activities for each pillar Assess appropriate validation frequency for models Recognize common validation findings and how to avoid them Understand independence requirements and organizational structures Apply SR 11-7 principles to CECL, credit risk, and AI models

Webinar Structure

Part 1: SR 11-7 Foundations (15 minutes)

• Regulatory history and context
• Scope and applicability
• Model definition and examples
• Risk management framework

Part 2: Validation Methodology (20 minutes)

• Conceptual soundness evaluation
• Ongoing monitoring processes
• Outcomes analysis and back-testing
• Documentation requirements

Part 3: Implementation Best Practices (10 minutes)

• Building effective validation programs
• Common pitfalls and how to avoid them
• Resource optimization strategies
• Preparing for regulatory examinations

Real-World Examples

The presentation includes practical examples from RegVizion's model validation experience:

• CECL model validation case study
• Credit risk model assessment
• AI/ML model validation challenges
• Vendor model oversight
• Validation finding remediation

Materials Included

Participants receive:

• Presentation slide deck (PDF)
• SR 11-7 compliance checklist
• Sample validation report template
• Model inventory template
• References to key regulatory guidance

Presenter Expertise

This webinar is presented by RegVizion's senior model validation team, bringing combined decades of experience in:

• Bank regulatory examinations
• Model risk management
• CECL and credit risk modeling
• AI/ML model validation
• Regulatory remediation

Why This Matters Now

With increasing model complexity (especially AI/ML), heightened regulatory scrutiny, and expanding model use across financial institutions, robust model risk management has never been more critical. SR 11-7 provides the foundation, but practical implementation requires expertise and experience.

This webinar demystifies SR 11-7 and provides actionable insights for building or strengthening your model validation program.

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Request Access to This Webinar

Duration: 45 minutes Format: Recorded presentation with slides Delivery: Secure streaming link via email within 24 hours Cost: Complimentary for financial institutions

To request access, complete the form below or contact us directly.

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Related Resources

• 2025 Model Risk Management Trends
• CECL Model Validation Checklist
• AI Model Governance Best Practices

Next Steps

After completing this introductory webinar, consider:

• Building a Bias-Free AI Credit Model (30-minute webinar)
• Loan Review Program Design Workshop (60-minute webinar)
• Scheduling a consultation to assess your validation needs

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Questions about SR 11-7 compliance or model validation? Our team is ready to help. Schedule a consultation to discuss your specific challenges and requirements.