---
title: "OSFI Guideline E-23 — Model Risk Management — KYE Protocol™ coverage"
description: "OSFI Guideline E-23 — Model Risk Management coverage by KYE Protocol™ — every requirement bijection-mapped to the KYE™ artefact that enforces it."
url: https://kyeprotocol.com/compliance/osfi-e-23/
lang: en
source: "KYE Protocol"
---

> OSFI Guideline E-23 — Model Risk Management coverage by KYE Protocol™ — every requirement bijection-mapped to the KYE™ artefact that enforces it.

OSFI Guideline E-23 — Model Risk Management

# OSFI Guideline E-23 — Model Risk Management — 81% of in-scope requirements covered.

4 requirements · 4 in scope (3 enforced · 1 advisory). The 81% is weighted over the in-scope base.

**Source:** Office of the Superintendent of Financial Institutions, Guideline E-23 Model Risk Management (revised final, effective 1 May 2027). Enterprise-wide model risk management across the model lifecycle: model inventory + risk rating, development and validation with independent challenge, ongoing monitoring, and clear roles and accountability — with the model definition expanded to capture AI/ML methods.

## By category

| Category | Reqs | Enforced | Designed | Advisory | Deferred | Coverage |
| --- | --- | --- | --- | --- | --- | --- |
| Model inventory + risk rating | 1 | 1 | 0 | 0 | 0 | **100%** |
| Development + independent validation | 1 | 0 | 0 | 1 | 0 | **25%** |
| Ongoing monitoring | 1 | 1 | 0 | 0 | 0 | **100%** |
| Roles + accountability | 1 | 1 | 0 | 0 | 0 | **100%** |

## Every requirement → the KYE™ artefact that enforces it

| ID | Title | Status | KYE™ enforcement |
| --- | --- | --- | --- |
| `osfi-e-23.inventory` | Model inventory + risk rating: maintain an enterprise-wide inventory of models, including AI/ML methods, each assigned a model-risk rating | enforced | **audit\_events**: `kye.risk.authority_register.v1`, `kye.risk_assessment.v1` **engines**: `internal`, `internal` **constitution\_refs**: `constitution/51-NO-SPOF.md`, `constitution/14-AGENTS-AND-ENGINES.md` |
| `osfi-e-23.validation` | Development + validation: subject models to independent validation and effective challenge proportionate to their risk rating before and during use | advisory | **audit\_events**: `kye.evidence.decision_map.v1`, `kye.replay.proof.v1` **engines**: `internal`, `internal` **rule\_packs**: `kye:rule-pack:investment-decision-authority` **constitution\_refs**: `constitution/13-RESILIENCE-LOOP.md` |
| `osfi-e-23.monitoring` | Ongoing monitoring: monitor model performance and limitations on a continuing basis and act on material deterioration | enforced | **audit\_events**: `kye.risk_assessment.v1`, `kye.purpose.admissibility.v1` **engines**: `internal`, `internal` **constitution\_refs**: `constitution/13-RESILIENCE-LOOP.md` |
| `osfi-e-23.accountability` | Roles + accountability: establish clear roles, responsibilities and accountability across the model lifecycle | enforced | **audit\_events**: `kye.compliance.attestation.v1`, `kye.evidence.decision_map.v1` **engines**: `internal` **constitution\_refs**: `constitution/12-PURPOSE-PERMISSION.md`, `constitution/21-DELEGATED-AUDITABILITY.md` |

Canonical KYE™ surfaces referenced on this page: [KYE Protocol™](https://kyeprotocol.com/).