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Governance

Model owner

The accountable role responsible for a model's appropriate use, documentation, approval, monitoring, limitations, issues, changes, and lifecycle decisions. The owner is distinct from the developer, validator, user, and approver where governance requires separation.

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

How the term is used in model risk management

The accountable role responsible for a model's appropriate use, documentation, approval, monitoring, limitations, issues, changes, and lifecycle decisions. The owner is distinct from the developer, validator, user, and approver where governance requires separation. 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 governanceThree lines of defenseModel approval

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.GuideBest model risk management softwareThe best MRM software is the platform that fits your model inventory, governance workflow, evidence requirements, validation process, integrations, security controls, and operating model. This guide summarizes the directory's software vendors alphabetically. It does not award a winner without a shared test environment, verified pricing, and comparable customer evidence.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.FrameworkPRA SS1/23PRA SS1/23 is the Bank of England Prudential Regulation Authority's supervisory statement setting out five model risk management principles for UK banks with internal model approval for credit, market, or counterparty credit risk. It took effect May 17, 2024 and explicitly extends to risks from AI and machine learning modeling techniques.InsightThe global map of model risk management frameworksThere is no single global MRM rulebook. This map separates enterprise model risk guidance from model-specific and adjacent controls so banks, insurers, and procurement teams can identify the right source before scoping validation work.