model risk management landscape
How artificial intelligence is shifting the model risk management landscape
Without risk, there are no rewards. Financial institutions, by their very nature, are risk-taking entities. They have to balance the risk against the potential benefits for the good of their investors, shareholders and members. Today, banks and financial institutions are deploying model risk management (MRM) solutions that are more sophisticated and varied than ever before. The number of models is also rising dramatically, according to analyst McKinsey – 10 per cent to 25 per cent annually at large institutions – as banks utilise models for an ever-widening scope of decision making.