How InferTrust™ provides verifiable evidence for model risk management programs as required by Federal Reserve SR 11-7 guidance.
Federal Reserve SR 11-7 establishes the supervisory framework for model risk management at banking organizations. It requires institutions to maintain effective model governance throughout the model lifecycle, including development, implementation, use, and ongoing monitoring. As AI models become integral to financial decision-making, the evidentiary requirements of SR 11-7 are becoming harder to meet with traditional documentation approaches.
SR 11-7 requires institutions to demonstrate model validation, ongoing performance monitoring, effective governance and controls, clear documentation of model limitations, and independent review and challenge. For AI/ML models, these requirements translate to verifiable evidence that specific model versions were validated, deployed under documented governance, and monitored for performance in production.
InferTrust™ (Patent Pending) Financial creates a continuous, tamper-evident record of model performance in production. Each decision record captures the exact Model Version ID, the policy governing the decision, the confidence score, and the action taken. Over time, this data provides model risk managers with verifiable evidence of model behavior that supports validation, monitoring, and reporting requirements.
When bank examiners review model risk management practices, they expect documented evidence of governance and monitoring. InferTrust™ records provide independently verifiable proof that goes beyond self-reported metrics, giving examiners confidence in the institution's AI governance practices.