OCC 2024 Model Risk Management Priorities
The Office of the Comptroller of the Currency's 2024 supervisory priorities for model risk management, emphasising enhanced governance, validation standards, and emerging technology risks including artificial intelligence and machine learning applications.
Executive Summary
The OCC's 2024 supervisory priorities emphasise enhanced model risk management frameworks with particular focus on emerging technologies, validation standards, and governance oversight. Banks must demonstrate sophisticated challenge capabilities for model development, validation, and ongoing monitoring across all model applications including artificial intelligence and machine learning systems.
2024 Priority Areas
- AI/ML governance: Comprehensive oversight frameworks for artificial intelligence and machine learning model applications
- Validation enhancement: Upgraded validation standards reflecting technological complexity and interconnectedness
- Climate risk modeling: Development of climate risk models with appropriate challenge and validation procedures
Challenge Requirements
Enhanced challenge mechanisms must address model complexity, validation procedures, and ongoing monitoring with particular emphasis on emerging technology applications and interconnected model risks.
References
- OCC Bulletin 2024-1 - 2024 Supervisory Priorities
- Model Risk Management Handbook