Model governance and inventory management under E-23

The Office of the Superintendent of Financial Institutions (OSFI)’s revised E-23 guideline sets a clear direction for how model risk management must be implemented, shifting expectations toward an enterprise-wide, risk-based approach with stronger governance across the full model lifecycle.

These expectations bring a sharper focus on how model risk management is operationalized in practice. Institutions are expected to maintain end-to-end visibility of models, clearly defined ownership, and the ability to understand, monitor, and justify model outcomes within decision-making processes.

This paper provides a practical implementation guide for model governance and inventory management under E-23. It outlines common governance challenges and their remediation approaches, E-23 expectations around model inventory and the evolving industry trends in next gen model inventory systems.