Introduction While Model Risk Management (MRM) principles are important, meeting the expectations set by regulators (FED 2011, PRA 2023) and fostering a robust risk management framework can be challenging or even confusing at times. We believe all MRM practitioners must develop a good understanding of …
The Prudential Regulation Authority’s (PRA) supervisory statement SS1/13 Model Risk Principles for All Banks, signifies a major shift in model risk management (MRM) for banks, and emphasizes the need for clear accountability, rigorous governance, and continuous monitoring and validation of models. The role of technological …
Uncertainty plays a critical role in AI model risk management since it can affect their performance, reliability, and ability to make accurate predictions. Practitioners involved with these models, depending on their role within organizations, may not have a complete understanding of the concepts behind model …
For an international Spanish-speaking audience, our very own Juan Martinez recently had a chance to talk to Plácido Doménech Espí about AI and model risk management (MRM). In this interview, Juan brings the audience into the world of model risk, uncovering the impact of the rapid …