SR 11-7 Model Risk Management Jobs

SR 11-7, issued by the Federal Reserve and the OCC in 2011, is the supervisory guidance that defines model risk management for US banks. It treats every model as a source of risk and requires a full lifecycle around it: sound development, independent validation, ongoing monitoring, and governance with clear ownership and documentation. For a decade it governed credit, capital, and fraud models, and it is now the framework institutions stretch to cover machine-learning and generative-AI models moving into production.

As AI multiplies the number of models a firm relies on, SR 11-7 has become one of the most transferable skill sets in the field, the bridge between quantitative work and governance. Roles that cite it want people who can validate models independently, challenge assumptions, and prove to examiners that the models a firm bets on are sound.