Requirements ยท Financial services
Model risk management guidance (SR 11-7)
Supervisory guidance on model risk management. 7 Moraph products list it under “Requirements it supports”. The products support this requirement; meeting it remains your organization’s responsibility.
About the rule
What it is
SR 11-7, Guidance on Model Risk Management, was issued by the Federal Reserve in April 2011, together with the OCC, and set expectations for how banking organizations develop, validate, use and govern their models. On April 17, 2026, the Federal Reserve, the OCC and the FDIC issued Revised Guidance on Model Risk Management (Federal Reserve SR 26-2), which supersedes and replaces SR 11-7. The Federal Reserve says the revised guidance is most relevant to banking organizations with over $30 billion in total assets.
Source: Federal Reserve SR 26-2. SR 11-7 in the glossary. This summary is for orientation only; read the rule itself or ask your counsel for what it requires of you.
Moraph’s Trust Center lists “SR 11-7” among the frameworks its controls are mapped to: “Champion/challenger validation for every production financial model, following Federal Reserve model-risk guidance.” It also states: “Moraph does not hold a certification or authorization for any framework in this list; where a client needs its own authorization or examination, we provide the control mapping and evidence to support it.”
Citations
How the products cite it
The exact wording on the product pages, with how many products use each.
- Interagency Guidance on Model Risk Management (SR 11-7) 4 products
- FDIC adoption of the model risk management guidance (FIL-22-2017) 1 product
- Interagency Guidance on Model Risk Management (SR 11-7 / OCC Bulletin 2011-12) 1 product
- Interagency Guidance on Model Risk Management (SR 11-7), for mapping and calculation logic 1 product
- OCC Comptroller's Handbook: Model Risk Management 1 product
- Supervisory Guidance on Model Risk Management (Federal Reserve SR 11-7 and OCC Bulletin 2011-12) 1 product
For what it requires of your organization, read the rule itself or ask your counsel. SR 11-7 in the glossary.
Products
The 7 products that support it
AML & SAR Automation Hub
ML-driven detection of structuring/layering, auto-populating FinCEN Suspicious Activity Reports (SARs) for officers.
Lists:
- Interagency Guidance on Model Risk Management (SR 11-7)
ATM & Cash Logistics Optimizer
Predictive analytics for branch cash replenishment, minimizing idle cash holding costs (non-earning assets).
Lists:
- Interagency Guidance on Model Risk Management (SR 11-7)
Automated Call Report Filer
Aggregates core banking data to map and validate the NCUA 5300 / FFIEC Call Report, reducing manual reconciliation errors. Your team approves and submits it.
Lists:
- Interagency Guidance on Model Risk Management (SR 11-7), for mapping and calculation logic
IFRS 9 / CECL Impairment Calculator
Estimates "Expected Credit Loss" under CECL and IFRS 9, predicting future bad debt from historical cohorts. The allowance recorded remains your institution's judgment.
Lists:
- Interagency Guidance on Model Risk Management (SR 11-7)
Model Risk Management (MRM) Validator
Automates validation and monitoring tests for AI/credit scoring models in support of SR 11-7 guidance, documenting model drift and bias. Validation conclusions remain your validators' to reach.
Lists:
- Supervisory Guidance on Model Risk Management (Federal Reserve SR 11-7 and OCC Bulletin 2011-12)
- OCC Comptroller's Handbook: Model Risk Management
- FDIC adoption of the model risk management guidance (FIL-22-2017)
Spreadsheet Risk Control
Auditing critical Excel models (EUCs) for formula errors and unauthorized changes.
Lists:
- Interagency Guidance on Model Risk Management (SR 11-7 / OCC Bulletin 2011-12)
Stress Testing & Capital Planning (DFAST)
Runs "what-if" economic scenarios (e.g., "Unemployment up 5%") to project capital ratios. Capital decisions remain with management and the board.
Lists:
- Interagency Guidance on Model Risk Management (SR 11-7)
Not sure which requirements apply to you? Request a gap analysis. All requirements: Requirements our products support.