Model risk management
Definition
Model risk management is the discipline banks and insurers use to control the risk of losses from models that are wrong or misused: independent validation, documentation, performance monitoring and limits on use. AI and machine learning models now sit inside this discipline.
Why It Matters
Supervisors apply model risk expectations to AI, so firms need validation and monitoring evidence for every material AI model.
Latest Coverage
- BMA AI guidance consultation closes 30 October as regulator runs World Investor Week webinar 8 October 2026
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