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Model decommissioning

The controlled removal of a model from approved use. Decommissioning addresses replacement, dependent processes, records, access, reporting, residual outputs, historical evidence, and retention obligations.

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

How the term is used in model risk management

The controlled removal of a model from approved use. Decommissioning addresses replacement, dependent processes, records, access, reporting, residual outputs, historical evidence, and retention obligations. 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 inventoryModel change managementModel owner

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.GuideModel Risk Management SoftwareModel risk management software centralizes a bank's model inventory, tracks validation status and lifecycle events, and automates governance workflows like tiering, revalidation scheduling, and audit-trail documentation. It replaces manual spreadsheet tracking, which becomes unmanageable once an institution has more than a handful of tiered models.FrameworkOSFI E-23OSFI E-23 is Canada's enterprise-wide model risk management guideline for federally regulated financial institutions. The final 2025 guideline takes effect on 1 May 2027 and applies a risk-based approach across model identification, inventory, risk ratings, lifecycle governance, independent review, monitoring, third-party models, and decommissioning.FrameworkSR 26-2SR 26-2, issued jointly by the Federal Reserve, OCC, and FDIC on April 17, 2026, is the current US interagency guidance on model risk management. It supersedes SR 11-7 (2011) and SR 21-8 (2021), preserving core disciplines like effective challenge and independent validation while shifting to a risk-based approach tailored to an institution's model risk profile, size, and complexity.