Press Release
Grain Yield Increase and Disaster Reduction by “Fen long” Technology Invented in China Contributing to Improve the Better Future of Human Being
Editor’s Note:
In recent years, natural disasters such as drought and waterlogging occur frequently. Climate warming has triggered various disasters that affect existence, which has brought unprecedented challenges to grain production, ecological environment and world peace maintenance. “Fen long” technology, the new method of farming invented by Wei Benhui, the Chinese inventor, can help to solve these problems in the world to a certain extent and make the human future better by multiple using “5 kinds of resources”, soil and its cubic natural rainfall, oxygen, temperature, humidity and solar energy.

In August 2021, the yield of highland barley in the saline-alkali soil, which was transformed by “smash-ridging” technology in Zangzhong Village, Zhaqi Town, Zhanang County, Shannan City, Tibet, China, the roof of the world, increased by 38.67%. The highland barley yield of smash ridging sand soil farmland in Kemai Community, Changzhu Township, Naidong District, increased by 1121.73 kg, with 25.43% of increase range, and the straw yield also increased by more than 20%. Peng Xinhua, the researcher of Nanjing Institute of Soil Science, Chinese Academy of Sciences has implemented smash-ridging sweet potato experiment in Jiangxi Province, and the result was that the yield increased by 89% to 117%. The maximum production increase of wheat of heavy coast saline-alkali soil in Dongying City, Shandong Province was 154.22% after being transformed by “smash-ridging” technology. The production increase of cotton of heavy saline-alkali soil in Yuli County, Xinjiang Autonomous Region was yet 81.17% in the fourth year after being transformed by “smash-ridging” technology. Over the past decade, “smash-ridging” technology was applied to nearly 50 kinds of crops such as rice, corn and wheat in 28 provinces such as Guangxi and Xinjiang, and no more rich water, pesticide or other production costs was required while the production increase was generally 10% to 50%, the quality was improved by 5% and the increase production in saline-alkali soil was 20% to 100% after transformation. Experts estimated that, the natural disaster such as waterlogging, drought, high temperature and low temperature may be reduced by more than 20%, and soil environment improvement,and crop biomass increase will reduce carbon by more than 10% and increase ground air humidity by 10%.

Invented by Wei Benhui from Guangxi Academy of Agricultural Sciences, “smash-ridging” technology is a major new method of farming, which can realize a new round of production increase, quality improvement, water conservation, disaster reduction, carbon reduction and sustainable development of agriculture and contribute to widen the space of human existence and development.
In March 2021, “smash-ridging” technology was shown on the world’s No. 1 screen in Times Square, which stated that the smash ridging agricultural machinery and smash ridging farming that would not mess the soil layers for ultra deep ploughing had broken through worldwide problems such as “physical” production increase of agriculture and physical transformation of saline-alkali soil. “Smash-ridging” technology which has shocked the world is common technology, common welfare and common wealth of all mankind.
The advert of “smash-ridging” technology marks that the world has ushered in a very rare new agricultural revolution. The technology is simple, widely applied and sustainable for hundreds of years. It has realized increase of grain production and decrease of disaster to benefit human being.

1. Creating subversive fifth farming mode, which is worldwide used
“Smash-ridging” technology is named after vertical burying, high-speed rotary-cut smash soil, ridge and suspend by using spiral, hollow and other “drill” farming tools invented by Wei Benhui, instead of the “plow” which has been used for 5,500 years. “Smash-ridging” technology has become the fifth efficient farming mode after slash-and-burn cultivation, man power, animal power and tractor ploughing in the history of human farming. “Smash-ridging” technology structured “smash-ridging agriculture” technology system that matches smash-ridging agricultural machinery, smash-ridging farming and smash-ridging cultivation and overturned traditional farming way and agricultural production technical philosophy by using the scientific concept of “ultra deep ploughing and deep loosening the soil without messing the soil layers”. The worldwide universal technology expands the space for human existence and development, and its scientific connotation and characteristics are as below:
First of all, fully excavate natural resource utilization that the earth feeds human being. With 5 kinds of natural resources, soil, the grain producer which the mankind survives on, natural rainfall, oxygen, temperature and humidity and solar energy, once more multiple positive utilization can be realized on the basis of existent farming and agricultural utilization to promote a new round of agricultural production increase, quality improvement, water conservation, disaster reduction, carbon drop and sustainable development.
Secondly, trigger deepening utilization of the surface soil of earth with a light force. Loosened soil increases several times over., and most of soil is granular, and granular structure surface is smooth. Unit weight decreases by 10% to 20%, and available nutrient increases by 10% to 30%. Basic fertility improves by 10% to 30%, and applying quantity of chemical fertilizer for planting crop can reduce by more than 10%.
Thirdly, create cultivated land reservoir with loosened soil and expanded volume. Natural rainfall reserves approximately double, which provides conditions for human being to utilize rainwater and snow water again. Soil porosity enlarges approximately and oxygen increase approximately by one time. Soil microbial community and quantity increase by almost multiple times.

Fourthly, create soil ecological environment that is suitable for crop growth. Smash ridging cultivation requires soil ecological environment with balanced water, fertilizer, gas and heat. The crop takes roots in the earlier stage, strengthens in the medium stage and becomes powerful in the later stage. It features production increase and quality improvement with resistant to drought, high and low temperature. The root system is particularly developed with fibrous root increasing and activity strengthening. The photosynthetic efficiency improves by 10% to 30%, and the stress resistance such as drought and high and low temperature improves by approximately 20%, while biomass increases by 20% to 30%.
Fifthly, create suitable environment for crops based on ecological conditions in which high agricultural yield is still available and consumption of agricultural “chemicals” is achievable even the consumption of fertilizer and pesticide can be reduced by more than 10% and some plastic mulch can be reduced. Some of polluted soil can be “purified itself”. For example, reduction of heavy metal pollution (reduction of cadmium content of rice) is a physical effect that other chemical means can hardly match.

Sixthly, realize no ecological area or crop variety limit. Almost all crops and some traditional Chinese medicinal materials in rice field, dry land and even saline-alkali soil can be applied to from Hainan Province at low latitude (18°N) to Xinjiang and Heilongjiang at high latitude (45° to 50°N), from Beihai of Guangxi at low altitude (10 to 15 metres) to Shigatse of Tibet at high altitude (over 4,000 metres), which indicates that there is no obvious limit on ecological area or crop variety, and it can be generally used in the world.
2. Application in China’s cultivated land and saline-alkali soil in 2021, with outstanding results
Test on smash ridging has been implemented in many places of China, and the result showed that comparing with traditional cultivation, the yield of rice increased by 15.5%, that of corn increased by 12.26%, and that of peanut increased by 8.05% with no fertilization.
“Smash ridging” technology has been applied to 50 kinds of crops such as rice, corn, wheat and potato in 28 provinces all over China for more than a decade, and production increase achieved 10% to 50%, and production increase in saline-alkali soil after being transformed achieved 20% to 100% with no increasing fertilization or irrigation volume. There are many cases of production increase in various places. In Yuanjiang City of Hunan Province, yield of smash ridging rice increased by 26.5% in that year, and it still increased by 12% in the fourth year after the first smash ridging cultivation. The yield of smash ridging wheat in Fuping, Shaanxi Province increased by 29.9%, and that of the second crop of corn increased by 34.89%. The average production increase of rained farming sugarcane was 32.5%.
In 2021, the cases of production increase with “smash-ridging” technology occurred frequently, and the results are outstanding.
Firstly, rice production continuously increases with “smash-ridging” technology. Yaoguao Town, Longhui County, Hunan Province used to be the breakthrough point where Academician Yuan Longping’s hybrid rice yields reached 900 kg per mu. In April 2014, “smash-ridging” cultivation was implemented, and the yield of hybrid rice increased by 25% in that year. It has been the 8th year since “smash ridging” technology was implemented, but the yield of hybrid rice is expected to increase by 10% or so. The yield of second crop of rice after rice smash ridging was implemented in Yongan Village, Shifu Town, Nanning City, Guangxi Autonomous Region increased by 9.5%.

Secondly, smash ridging water conservation and continuous high yield lasted for many years. In 2021, the third year after “smash-ridging” technology was implemented in Yanshan, Cangzhou City, Hebei Province, the yield of wheat with water conservation increased by 18% with irrigation reduction by nearly 2,000 cubic metres per hectare. In 2021, the sixth year after “smash-ridging” technology was implemented in Fanjiazhai Village, Guyang Town, Lankao County, Henan Province, the yield of wheat increased by 10.3%.
Thirdly, “smash-ridging” agriculture and saline alkali soil transformation in highland region. As previous statement, the yield of highland barley of saline alkali soil in Tibet, the roof of the world, increased by 38.67%, that of highland barley of sand soil cultivated land with “smash-ridging” technology increased by 25.43%, that of highland barley straw increased by more than 20%, which can effectively solve the problem of lack of grain and feed in Tibet.
Fourthly, the history of high yield of sugarcane in a large area with “smash-ridging” technology was made. “Smash-ridging” technology “145” demonstration base for planting sugarcane was built in Guangxi Academy of Agricultural Sciences. On March 6, 2021, upon experts’ acceptance, it increased by 38.3% than conventional cultivation. “Smash-ridging” technology “145” demonstration in Binyang of Guangxi, is expected to make history of green ecological high yield of sugarcane in a large area with entire mechanization to bring a sample for China’s and the world’s sugarcane planting technology.
3. Increasing grain yield and decreasing disaster by conforming to the nature, and all the mankind getting a better future
The best living quality and survival and development environment with abundant and tasteful food, fresh air and visible blue sky and cloud are mankind’s good wishes.
The earth is endowed with 5 kinds of inexhaustible natural resources, soil and its stereoscopic spatial natural rainfall, oxygen, temperature and humidity and solar energy. Soil is the “producer” of grain and other agricultural products the human being survives on and the “regulator” of natural environment to relieve drought, waterlogging and other natural disasters. In order to realize the above dreams, human being has to profoundly comprehend and properly utilize the “5 kinds of natural resources”, which is the fundamental obedience to the rules of resource utilization for mankind’s survival. For a country, the more proper utilization rate of “the 5 kinds of natural resources” of the stereoscopic space, the more secure grain and ecology in the country, the more fortunate of national life, which is also in this way for all the world and all the mankind.

The core of “smash-ridging” technology is to multiply sound utilization of the above “5 kinds of natural resources”. Its pioneering scientific contribution is based on the principle of “ultra deep cultivation and deep loosening (by utilizing the soil resources of plough sole which human being has not utilized yet), loosening soil at original site, granular soil, once off completion of soil preparation., and no tillage or light tillage for conservation tillage for years”. Meanwhile, “smash-ridging” technology is almost applied to various land resources including cultivated land and saline alkali soil so that agricultural available resources have expanded substantially. Furthermore, yield increase can be maintained with properly reducing fertilization. Additionally, it is easy to popularize and apply, and it is merely to replace tractor “plough” cultivation with smash ridging “drill”. Rice field is 25 cm deep, and dry land is 35 cm deep, and saline alkali soil is 40 cm deep. Expected effect is achievable with no excessive input or technical instruction required.
Wei Benhui said that invention of spiral and hollow “drill” tillage implements would certainly bring a major change of tillage implements and modernization of series products of smash ridging agricultural machinery equipment. The world will usher in great new times of “smash-ridging agriculture”.

According to expert’s estimates, if 1 billion mu of farmland and 300 million saline alkali land are cultivated in China, 130 billion kg of grain can be increased every year and 300 to 400 million more people can be fed. If land “smash-ridging” technology is implemented in 50% of farmland in the world, yield of grain can be increased and more people can be fed.
With “smash-ridging” technology, 40 to 50 cubic metres of natural rainfall reserve can be increased for cultivated land per mu, and drought, waterlogging and other disasters can be reduced. Recently, heavy waterlogging occurred in Henan Province. Because light tillage is carried out in most of cultivate land (most of loosened soil of plough layer is 12 to 15 cm), the soil of button layer is compacted and moves upward due to rolling by tractor wheels for years. Adding the road extension and ground hardening in the villages, there is no more place for water reservation. If “smash ridging” technology is implemented in half of cultivated land, such affect of rainstorm can be reduced greatly. Also, with improving smash ridging soil environment and significant increasing crop biomass, the goals including carbon reduction, peak carbon dioxide emissions and carbon neutralization can be achieved early, and global warming can be relived greatly.
“Smash-ridging agriculture” and its entire production technology system invented and created by Wei Benhui have surpassed the existent agricultural production mode and have been affirmed and supported by Yuan Longping and other more than 10 Chinese academicians. The technology system has been practiced to almost all crop varieties from low latitude to high latitude and from low altitude to high altitude. It can be popularized globally and is expected to be a new mainstream technology in the world to lead the trend of agricultural cultivation development. The future will be better for all mankind. (Written by Heng Yi)
[Character Introduction]
Wei Benhui, the inventor of “smash-ridging” technology, Chinese cultivation expert, secondary researcher of Guangxi Academy of Agricultural Sciences, has acquired 21 achievements in sugarcane, Chinese yam, potato, cassava and “smash-ridging” technology, 18 national, provincial and ministerial awards, 15 invention patents. He has bred 26 new varieties of Chinese yam. Additionally, he has published 10 works such as China’s Ecology for Grain Increase with Smash Ridging Alive Soil and Chinese Yam Cultivation as well as more than 170 papers. He has won the titles of National Outstanding Scientific and Technological Worker of China, Special Allowance Expert of the State Council, Guangxi Excellent Expert, Guangxi Outstanding Contribution Expert, Guangxi Most Beautiful Scientific and Technological worker, etc.
About Author
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Digi Observer journalist was involved in the writing and production of this article.
Press Release
New Report Reveals Significant Gap Between Corporate AI Effectiveness and Expectations
The State of AI at Work, published by Kristian Kabashi and The Blank Collar, shows that adoption is widespread, but 87% of users are still beginners
Switzerland, 24th Jun 2026 — Kristian Kabashi, the technology executive and analyst who developed The Blank Collar transformation practice for the intelligence age, today announced the publication of a new field report, The State of AI at Work. The report reveals a significant gap between corporate expectations of artificial intelligence (AI) in the workplace versus actual results. The report shows that while AI adoption is widespread, 87% of workers use AI at the beginner level. Just 13% use AI for meaningful work.
According to Kabashi, “Your company bought AI, but nobody changed. At some level, we’ve seen this with every major technology shift over the years, but in the case of AI, these results are quite disappointing. The technology has such vast promise, but, in my view, it’s not being used the right way.”
The Zurich-based Kabashi comes to his perspective on AI after spending two decades as a creative, a builder, and a transformer. He served in senior executive roles in global enterprises such as Dentsu and the Havas agency, as well as being the founder of Cybee.ai and the AI company Numarics, which was acquired in 2024.
The Blank Collar has been Kabashi’s philosophical home since 2018. The Blank Collar’s slogan is, “Work is for bots. Life is for humans.” It is the successor to the idea of white-collar employment. While blue collars built the industrial age, and white collars led the way in the information age, blank collars will build the intelligence age—directing AI agents instead of doing the routine work themselves.
The problem, as Kabashi sees it, is that so few workers move past the experimenter line into work that pays for itself. What blocks proficiency is not prompting. “People can learn to in an afternoon,” Kabashi said. “They get stuck one step earlier, on a blank question, which is ‘What do I even point this at?’ They open the tool, summarize one email, and bounce, because nothing in the actual job comes pre-labeled, give this to AI.”
Kabashi calls this the “use case desert.” The real issue, in his view, however, is a lack of leadership. “I don’t want to point fingers. This is all so new, it’s not surprising that senior executives aren’t quite plugged into what’s going to work. But, everyone better get busy pretty soon, because the companies that figure this out—who can rise above 13% meaningful AI use—are going to be strong competitive performers.”
To learn more, visit https://www.theblankcollar.com/
To download the report, visit https://www.theblankcollar.com/reports/the-state-of-ai-at-work.pdf
About The Blank Collar
The Blank Collar is a philosophy, a framework, and an engine, a transformation practice for the intelligence age. The term was coined in 2016. The practice was founded in 2018. By the time the world had a vocabulary for what was coming, The Blank Collar already had a thesis, a method, and a name. The term “Blank Collar” refers to a new kind of professional who works alongside AI agents, directing, orchestrating, framing, and keeping what no machine can take.
Media Contact
Organization: The Blank Collar
Contact Person: Kristian Kabashi
Website: https://www.theblankcollar.com
Email: Send Email
Country:Switzerland
Release id:46443
The post New Report Reveals Significant Gap Between Corporate AI Effectiveness and Expectations appeared first on King Newswire. This content is provided by a third-party source.. King Newswire makes no warranties or representations in connection with it. King Newswire is a press release distribution agency and does not endorse or verify the claims made in this release. If you have any complaints or copyright concerns related to this article, please contact the company listed in the ‘Media Contact’ section
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Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Digi Observer journalist was involved in the writing and production of this article.
Press Release
Dental Pitch Releases 2026 Dental Practice Valuation Guidance
Dental Pitch Advisory & Brokerage has released its 2026 dental practice valuation guidance to help practice owners better understand the financial and operational factors buyers evaluate before a sale. The guidance explains why modern dental practice valuation is no longer based on collections alone, but on EBITDA, Quality of Earnings, expense benchmarks, valuation multiples, clean financial documentation, provider dependence, hygiene performance, growth potential, and transferability after closing. Dental Pitch emphasizes that stronger sale outcomes are created through preparation, not guesswork, and that practice value is built, documented, defended, and positioned before going to market.
Atlanta, GA, United States, 24th Jun 2026- Dental Pitch Advisory & Brokerage, a seller-side dental practice advisory and brokerage firm, has released new 2026 dental practice valuation guidance to help dentists understand what their practice is worth — and how to protect that value before going to market.

The guidance addresses the most common questions dentists ask when preparing for a sale: how much is my dental practice worth, what drives dental practice valuation multiples, how dental office expense percentages affect EBITDA, and what it takes to earn a defensible number buyers will not renegotiate in due diligence.
“Revenue still matters, but it is no longer enough to simply show strong collections,” said Dental Pitch Advisory & Brokerage. “The practices that sell for the strongest outcomes have clean financials, healthy EBITDA margins, documented systems, stable teams, strong hygiene production, and a clear story that gives buyers confidence.”
EBITDA Is the Primary Driver of Dental Practice Valuation in 2026
According to Dental Pitch, EBITDA dental practice valuation has become the standard methodology used by DSOs, private equity-backed groups, and sophisticated private buyers. EBITDA — earnings before interest, taxes, depreciation, and amortization — measures how efficiently a practice converts revenue into operating profit, independent of how the owner is compensated or how the practice is financed.
A well-run general dental practice typically generates an EBITDA margin of 18% to 22% of net collections. Practices pushing 20% or higher may attract stronger buyer interest and more favorable dental practice valuation multiples. In cases where doctor compensation is properly normalized and overhead is controlled, normalized EBITDA margins can reach 25% to 29%.
Dental Pitch advises sellers that EBITDA must be clean, documented, and defensible — supported by organized financials, properly categorized add-backs, and a compensation structure buyers can understand and validate.
Dental Office Expense Percentages Are a Direct Signal of Practice Health
As part of its 2026 valuation guidance, Dental Pitch has published updated dental office expense percentage benchmarks to help sellers compare their cost structure against what healthy, well-run practices typically spend. Buyers use these benchmarks to evaluate efficiency, flag risk, and stress-test EBITDA before making offers.
Healthy 2026 ranges as a percentage of net collections include: doctor compensation at 22% to 25%, total team labor at 30% to 33%, dental supplies and lab combined at 11% to 13%, occupancy at 6% to 7%, marketing at 2% to 4%, and G&A at 6% to 8%.
“When expenses fall outside these ranges, buyers ask harder questions,” said Dental Pitch Advisory & Brokerage. “When expense performance is clean and well-documented, it reinforces EBITDA and supports the valuation — rather than creating room for buyers to push back.”
Dental Pitch works with sellers to identify where overhead improvements can meaningfully increase EBITDA before a practice goes to market. At current multiples, every dollar of overhead reduction that flows through to EBITDA can add $5 to $8 of practice value. Full benchmark guide: Dental Office Expense Percentages — 2026 Guide.
2026 Dental Practice Valuation Multiples Reward Earnings Quality
Dental Pitch’s 2026 guidance outlines the following general dental practice valuation multiples based on normalized EBITDA size:
- $200K–$500K EBITDA: 4x to 6x
- $500K–$1M EBITDA: 5x to 7x
- $1M–$2M EBITDA: 6.5x to 8x
- $2M+ EBITDA: 8x and above
Dental Pitch emphasizes that these multiples are not automatic. They are earned through earnings quality, consistency, provider diversity, hygiene strength, operational documentation, and buyer competition. Practices below $200,000 in EBITDA are often evaluated differently, with value more closely tied to collections, location, and buyer fit. Complete breakdown: Dental Practice Valuation Multiples 2026.
Quality of Earnings Protects Valuation Through Due Diligence
Beyond the valuation number, Dental Pitch advises sellers on Quality of Earnings — the process of determining whether EBITDA is accurate, recurring, and defensible under buyer scrutiny. A strong Quality of Earnings story reduces the risk of valuation renegotiation after a letter of intent is signed.
Quality of Earnings reviews may examine revenue consistency, collections trends, hygiene performance, add-back documentation, payer mix, payroll structure, and operational risks. Dental Pitch’s QoE Lite process is designed specifically for dental transactions — lighter and faster than a full third-party engagement, and focused on the variables buyers actually scrutinize. Dental Practice Valuation: Why Sellers Need a QOE Lite Before Buyers Do.
“A valuation gives a number. A Quality of Earnings review explains and defends that number,” said Dental Pitch Advisory & Brokerage. “Sellers who go to market with both are in a fundamentally stronger position than sellers who have only one.” Read more https://dentalpitchbrokerage.com/dental-practice-valuation-qoe-lite/
About Dental Pitch Advisory & Brokerage
Dental Pitch Advisory & Brokerage is a seller-side dental practice advisory and brokerage firm helping dentists understand dental practice valuation, improve EBITDA, prepare for sale, evaluate buyer options, and transition with confidence. The firm supports single private practices, specialty practices, multi-location groups, and larger dental organizations preparing for sale to private buyers, DSOs, private equity-backed groups, or strategic partners.
For more information, visit dentalpitchbrokerage.com
Media Contact
Organization: Dental Pitch Advisory & Brokerage
Contact Person: Dental Pitch Advisory & Brokerage
Website: https://dentalpitchbrokerage.com/
Email: Send Email
Contact Number: +18336580118
Address:3290 Northside Parkway NW, Suite 825 Atlanta, GA 30327
City: Atlanta
State: GA
Country:United States
Release id:46417
The post Dental Pitch Releases 2026 Dental Practice Valuation Guidance appeared first on King Newswire. This content is provided by a third-party source.. King Newswire makes no warranties or representations in connection with it. King Newswire is a press release distribution agency and does not endorse or verify the claims made in this release. If you have any complaints or copyright concerns related to this article, please contact the company listed in the ‘Media Contact’ section
About Author
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Digi Observer journalist was involved in the writing and production of this article.
Press Release
Kevin D. Oden & Associates: New Federal Model Risk Guidance (SR 26-2) Leaves Generative and Agentic AI Outside Scope, Shifting the Burden to Institutions
San Francisco, CA, 24th June 2026, ZEX PR WIRE — Kevin D. Oden & Associates (KDOA), a model risk management and quantitative advisory firm, today shared its perspective on SR 26-2, the revised interagency guidance on model risk management issued jointly by the Federal Reserve, the Office of the Comptroller of the Currency, and the FDIC on April 17, 2026.

The revised guidance (SR 26-2, OCC Bulletin 2026-13, and FDIC FIL-15-2026) supersedes the 2011 guidance widely known as SR 11-7, which had governed how banking organizations identify, validate, monitor, and govern quantitative models for fifteen years. The update moves toward a more flexible, principles-based approach that is tailored to an institution’s model risk profile and the size and complexity of its operations. It is expected to be most relevant to banking organizations with more than $30 billion in total assets, though smaller institutions with significant model-risk exposure may also fall within its expectations.
KDOA’s central observation is what the guidance leaves out. SR 26-2 expressly places generative AI and agentic AI models outside its scope, describing them as novel and rapidly evolving. The revised principles apply to traditional statistical and quantitative models. For institutions already deploying AI-driven tools across credit, fraud, BSA/AML, and customer-facing functions, this means there is no regulatory floor specific to those systems. The responsibility to define proportionate governance and controls sits with the institution.
“The agencies modernized the baseline and were deliberate about not extending it to generative and agentic AI,” said Kevin Oden, Managing Partner of Kevin D. Oden & Associates. “That is a reasonable call given how fast the technology is moving, but it does not reduce the risk these systems carry. It relocates the burden. Boards and model risk teams now have to build credible governance for AI without a prescriptive standard to point to, while also re-grounding their traditional model programs in the revised guidance.”
KDOA notes three practical implications for institutions reassessing their programs against SR 26-2:
- Re-baselining is not optional. Policies, validation standards, and inventory taxonomies written against SR 11-7 reference a superseded standard. Programs should be re-mapped to the revised principles, with particular attention to how materiality and a risk-based, tailored approach are documented.
- The AI gap is now an institutional decision. Because generative and agentic AI sit outside the guidance, institutions must decide, document, and defend how those systems are governed under their own risk frameworks. Examiners can still act on unsafe or unsound practices regardless of scope. Separate AI-specific guidance is widely anticipated.
- Proportionality cuts both ways. A principles-based standard gives institutions room to right-size their programs, but it also removes the cover of a checklist. The reasoning behind each control choice has to hold up.
A final point on scope: the exclusion is narrower than it first appears. Only generative and agentic AI fall outside SR 26-2. Traditional statistical and quantitative models remain fully in scope, as do non-generative, non-agentic AI and machine learning models. For most institutions, that means the bulk of their AI/ML footprint, including the conventional machine learning used in credit, fraud, and BSA/AML, is still governed by the revised guidance and has to be re-mapped to it. The open question sits only with the newest generative and agentic systems, which is exactly where the institution, not the regulator, now sets the standard.
KDOA’s validation and governance teams, whose members have held senior model risk roles at institutions including the Federal Reserve, Fannie Mae, Wells Fargo, Bank of America, Lloyds Banking Group, and Varo Bank, are advising clients on re-baselining their programs to the revised guidance.
The firm’s technology platform, Model IQ, supports this work by managing the full model lifecycle in one system, from registration and risk tiering through validation, monitoring, and board reporting. Its program-assessment tooling is being updated to evaluate institutions against the revised guidance, helping teams identify gaps and track remediation as they transition off the 2011 standard.
About Kevin D. Oden & Associates
Kevin D. Oden & Associates provides quantitative analysis, model risk management, and risk advisory services to the financial industry and beyond. The firm’s team includes more than ten PhDs and senior quantitative analysts with experience across credit, market, BSA/AML, fraud, CECL, stress testing, and AI/ML models. KDOA is SOC 2 Type II certified and an NMSDC-certified Minority Business Enterprise. Its Model IQ platform was designed by practicing model risk managers for the teams that run MRM programs day to day.
For more Information, You can Visit: https://kdoden.com
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Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Digi Observer journalist was involved in the writing and production of this article.
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