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.
About Author
Alka Jha
Director – Credit Risk Management Operations
Alka is an experienced professional in the mortgage lending domain with rich exposure to operating and managing across diverse functional areas such as quality and process. Her expertise includes implementing enterprise-grade AML compliance solutions like ALFA™ – Automated Learning for Financial Alerts. Her career is marked by a commitment to enhancing operational efficiency and compliance standards.