OCC AI Supervisory Expectations — Model Risk

OCC AI Supervisory Expectations — Model Risk · Third-Party Risk · New-Activity / Filing Readiness — 50% of in-scope requirements covered.

8 requirements · 7 in scope (7 designed) · 1 out-of-scope (outside KYE™’s authority layer). The 50% is weighted over the in-scope base.

OCC AI Supervisory Expectations: requirement → the KYE™ artefact that enforces it

Demo data

You learn: Which requirements KYE™ enforces at runtime and with which artefact. You can: Walk the requirements.

  1. validated-use-authority-at-the-decision-boundary · designed

    Model risk management: a consequential AI action proceeds only under the approved use and recorded authority…

    Rule packs: kye:rule-pack:occ-ai-supervision · Constitution: 12 purpose permission, 36 governedui

  2. model-change-as-named-authority-decision · designed

    Model risk management: a change to a model's authority is itself a named-authority, evidenced decision before…

    Rule packs: kye:rule-pack:occ-ai-supervision · Constitution: 36 governedui, 13 resilience loop

  3. third-party-ai-authority-register · designed

    Third-party / vendor AI risk: external AI providers act only inside an authority recorded in the…

    Rule packs: kye:rule-pack:occ-ai-supervision · Constitution: 12 purpose permission

  4. out-of-scope-escalation-before-finality · designed

    Third-party / vendor AI risk: out-of-scope or out-of-authority actions escalate (REQUIRE_APPROVAL) or are…

    Rule packs: kye:rule-pack:occ-ai-supervision · Constitution: 25 edge governance, 36 governedui

  5. new-activity-examiner-replayable-evidence · designed

    New-activity / filing & examiner readiness: every consequential AI action emits a replay-provable Evidence…

    Rule packs: kye:rule-pack:occ-ai-supervision · Constitution: 13 resilience loop, 30 audit worm retention

  6. action-authority-inventory · designed

    New-activity / filing & examiner readiness: the AI inventory is extended to an action-authority inventory…

    Rule packs: kye:rule-pack:occ-ai-supervision · Constitution: 12 purpose permission

How this widget is built
Demonstrates
KYE™ Compliance Mapping Rail™
Components
  • Framework requirement (clause)
  • Coverage status
  • KYE™ enforcement artefact (event, decision-record field, Evidence Pack™ entry)
Flow
Clause → status → the KYE™ artefact that enforces it, enforced requirements first. Architecture diagram
Used on

Source: The U.S. Office of the Comptroller of the Currency (OCC) supervises national banks and federal savings associations. Its supervisory expectations for a bank deploying consequential AI draw on OCC Bulletin 2011-12 (joint with Fed SR 11-7) on model risk management, OCC Bulletin 2013-29 and the 2023 Interagency Third-Party Risk Management Guidance on third-party / vendor risk, OCC 'heightened standards' for risk governance, and the OCC's new-activity / examiner-engagement expectations a bank meets before an examiner reviews a consequential-AI activity. KYE Protocol™ governs the action-boundary subset at runtime: it governs whether a consequential banking AI action is authorised, within its approved use and recorded authority, escalated when out-of-scope, evidenced, and final at the moment it happens — and PROVES the basis, replayable by an OCC examiner or internal audit. KYE™ does NOT run the bank's model risk management (MRM) program, does NOT validate models or judge model correctness, does NOT make the bank's filing, and does NOT perform third-party due-diligence on the merits (constitution section 0.25 integrate-not-compete; honest scope). · License: OCC Bulletins and supervisory guidance are U.S. government works in the public domain. The KYE™ registry paraphrases each expectation's intent and cites the official source for mapping purposes only; it does not reproduce OCC text.

By category

CategoryReqsEnforcedDesignedAdvisoryDeferredCoverage
Model risk management (use authority at the decision boundary)2020050%
Third-party / vendor AI risk2020050%
New-activity / filing & examiner readiness2020050%
Heightened-standards governance & accountability1010050%
Model development, validation & supervisory determinations100000%

Every requirement → the KYE™ artefact that enforces it

IDTitleStatusKYE™ enforcement
occ-ai-supervision.validated-use-authority-at-the-decision-boundaryModel risk management: a consequential AI action proceeds only under the approved use and recorded authority for that modeldesignedrule_packs: kye:rule-pack:occ-ai-supervision
dictionaries: internal
constitution_refs: constitution/12-PURPOSE-PERMISSION.md, constitution/36-GOVERNEDUI.md
occ-ai-supervision.model-change-as-named-authority-decisionModel risk management: a change to a model's authority is itself a named-authority, evidenced decision before the changed model may actdesignedrule_packs: kye:rule-pack:occ-ai-supervision
dictionaries: internal
constitution_refs: constitution/36-GOVERNEDUI.md, constitution/13-RESILIENCE-LOOP.md
occ-ai-supervision.third-party-ai-authority-registerThird-party / vendor AI risk: external AI providers act only inside an authority recorded in the action-authority registerdesignedrule_packs: kye:rule-pack:occ-ai-supervision
dictionaries: internal
constitution_refs: constitution/12-PURPOSE-PERMISSION.md
occ-ai-supervision.out-of-scope-escalation-before-finalityThird-party / vendor AI risk: out-of-scope or out-of-authority actions escalate (REQUIRE_APPROVAL) or are refused before finalitydesignedrule_packs: kye:rule-pack:occ-ai-supervision
constitution_refs: constitution/25-EDGE-GOVERNANCE.md, constitution/36-GOVERNEDUI.md
occ-ai-supervision.new-activity-examiner-replayable-evidenceNew-activity / filing & examiner readiness: every consequential AI action emits a replay-provable Evidence Pack™ an OCC examiner can verify offlinedesignedrule_packs: kye:rule-pack:occ-ai-supervision
dictionaries: internal
constitution_refs: constitution/13-RESILIENCE-LOOP.md, constitution/30-AUDIT-WORM-RETENTION.md
occ-ai-supervision.action-authority-inventoryNew-activity / filing & examiner readiness: the AI inventory is extended to an action-authority inventory — what each AI is AUTHORISED to do, ready for examiner reviewdesignedrule_packs: kye:rule-pack:occ-ai-supervision
dictionaries: internal
constitution_refs: constitution/12-PURPOSE-PERMISSION.md
occ-ai-supervision.heightened-standards-named-accountabilityHeightened-standards governance & accountability: every consequential AI action maps to a named accountable officer under whose authority it proceedsdesignedrule_packs: kye:rule-pack:occ-ai-supervision
constitution_refs: constitution/36-GOVERNEDUI.md, constitution/21-DELEGATED-AUDITABILITY.md
occ-ai-supervision.model-development-validation-supervisory-determinationsModel development, validation & supervisory determinations on the meritsout-of-scope(no enforcement cited)

Canonical KYE™ surfaces referenced on this page: Evidence Pack™ · KYE Protocol™.