White Paper

Model Risk Management in Financial Services: Challenges, Solutions, and Trends

Overview

This white paper examines the crucial practice of Model Risk Management (MRM) in financial services, highlighting the challenges, solutions, and emerging trends. It explores how institutions manage risks associated with financial models amidst evolving technologies and regulatory landscapes, ensuring robust governance and compliance.

Takeaways

  • Need for enhanced governance and oversight due to increased model complexity and regulatory scrutiny.
  • Integration of AI and Big Data in risk management, raising efficiency and new challenges.
  • Critical focus on fairness, transparency, and bias mitigation in model outputs.
  • Growing reliance on technology, particularly AI, to enhance accuracy and efficiency in model risk management.