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The Board Identified Areas of Improvement for Its Supervisory Stress Testing Model Validation Activities, and Opportunities Exist for Further Enhancement

The Office of Inspector General conducted this evaluation to assess the extent to which the Board of Governors of the Federal Reserve System's (Board) model risk management practices in support of its supervisory stress testing efforts are consistent with supervisory guidance on model risk management previously issued by the Board. Specifically, we focused primarily on model validation activities, but we also evaluated

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