Model Risk Directory emblemModel Risk Directory
Governance

Model change management

The formal process for reviewing, approving, testing, and documenting changes to an existing model, whether a minor recalibration or a substantive redesign, so that changes go through appropriate governance and, where material, trigger revalidation rather than bypassing controls.

Last updated: Last reviewed by: Model Risk Directory editorial team

How the term is used in model risk management

The formal process for reviewing, approving, testing, and documenting changes to an existing model, whether a minor recalibration or a substantive redesign, so that changes go through appropriate governance and, where material, trigger revalidation rather than bypassing controls. The exact implementation varies by institution, model type, risk rating, and governing framework. Use the linked regulatory pages and buyer guides below for scope-specific requirements.

Related glossary terms

Model governanceModel validationModel inventory

Guides and frameworks that use this term

GuideModel Risk Management FrameworkA model risk management framework is the documented set of policies, roles, and processes an institution uses to identify, tier, govern, and validate its models. Under SR 26-2, a sound framework covers model development and use, independent validation, and governance and controls, scaled to the institution's size and model risk profile rather than applied uniformly.