SR 26-02 and AI Governance: A Strategic Guide for Financial Institutions

SR 26-02 for MRM and AI Risk Governance: What Changes, What It Means, and How to Capture Speed Without Sacrificing Defensibility

Solytics Partners is pleased to present its latest whitepaper, "SR 26-02 for MRM and AI Risk Governance," offering a practical perspective on one of the most significant shifts in model risk management in recent years. As financial institutions adapt to evolving regulatory expectations, SR 26-02 introduces a more proportionate, risk-based approach to governance, creating opportunities to improve efficiency, accelerate model deployment, and strengthen oversight.

What’s Inside:

• Understanding SR 26-02: Explore the key changes from SR 11-7 and the implications of proportional, materiality-driven governance.
• Model Risk Management Transformation: Learn how institutions can align validation efforts, monitoring, and governance activities with actual model risk and business impact.
• AI Governance Considerations: Understand the implications of SR 26-02's exclusion of Generative AI and Agentic AI, and why organizations must establish their own governance frameworks today.
• Practical Implementation Insights: Discover how continuous monitoring, model inventory management, automation, and risk-based oversight can reduce governance costs while improving effectiveness.
• Global Regulatory Perspective: Examine how SR 26-02 aligns with broader regulatory expectations, including the EU AI Act, PRA SS1/23, and OSFI E-23.

Why This Whitepaper?

Developed by Solytics Partners' Model Risk Management and AI Governance specialists, this whitepaper provides actionable insights for banks, financial institutions, risk leaders, model validators, and governance professionals. It highlights how organizations can transform governance from a compliance obligation into a strategic enabler of innovation, scalability, and competitive advantage.

About Solytics Partners

Solytics Partners is a global provider of Risk, Compliance, Analytics, and Technology solutions. Through our advanced platforms, including Nimbus Uno™ and MRM Vault™, we help organizations modernize model risk management, AI governance, regulatory compliance, and enterprise risk oversight. By combining deep domain expertise with innovative technology, we enable institutions to build scalable, defensible, and future-ready governance frameworks.