Risk Management

On 17 April 2026 the Federal Reserve, the OCC and the FDIC replaced SR 11-7, the supervisory guidance that had told US banks how to manage model risk since 2011. The new letter, SR 26-2, keeps the core ideas and makes them more principles-based. It also draws a line that every AI team in a bank now has to deal with: "Generative AI and agentic AI models are novel and rapidly evolving. As such, they are not within the scope of this guidance."