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AI Governance · SR 11-7

SR 11-7 for AI and model risk

For banks and capital-markets teams: AI behavior turned into the inventory, validation, monitoring, and governance evidence model-risk teams already use. The bank-grade discipline US examiners apply, mapped to live AI.

GuidanceSR 11-7
IssuerFed / OCC
Spine3-part

Model-risk evidence from live AI behavior.

Every claim in the report traces back to source evidence, ownership, and the workflow decision it supports.

Valuefund next
Riskcontain now
Fluencytrain where work changed
What it isType: Supervisory guidanceIssuer: Federal Reserve & OCCDomain: Model-risk management in bankingApplies to AI: When it drives material banking decisions
At a glance

A three-part model-risk spine for AI.

0-part spine: development, validation, ongoing monitoring
Bank-gradethe discipline US examiners already apply
Behavioralvalidation needs observed behavior, not static docs
Requirement → Evidence

The guidance names the expectations. We produce the evidence.

SR 11-7 expectationEvidence we produce
Model inventoryA complete inventory with ownership, purpose, use, limits, and materialityAI inventory, model or agent owner, business use, materiality flag, dependency map, approval state
Development & documentationDesign, data, assumptions, limits, and implementation controlsUse-case baseline, data-source record, prompt or model version, control design, test set, signoff
ValidationIndependent assessment of soundness, outcomes, and performanceValidation packet, benchmark results, exception analysis, challenger notes, weakness log, remediation status
Ongoing monitoringTrack performance, monitor change, escalate, report to governanceDrift report, control-health series, incident trace, change log, stale-evidence flag, committee-ready summary
One pipeline, every framework

How the SR 11-7 evidence gets produced.

Trace

production behavior

Classify

sensitivitysource

Evaluate

per-use-case baseline

Map

every framework

Pack

on demand
What teams should remember

Three things SR 11-7 evidence gets right.

01

AI does not escape model risk

If an AI system influences a banking decision, model-risk teams need inventory and monitoring.

02

Validation needs behavioral evidence

Static docs are not enough when outputs change with prompts, data, tools, vendors, or model versions.

03

Governance forums need a summary

We keep raw traces available while producing risk summaries committees can actually review.

SR 11-7 AI, asked plainly

Direct answers.

No. It is banking supervisory guidance for model-risk management. AI can fall under scope depending on use.

Keep the evidence map connected

Pairs cleanly with the rest.

Specialist AI builder, across the board

One builder, across the board.

We take your AI from strategy to outcome, with governance, audit, and evals built into every build. Start with a discovery call, or a quick audit.