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
AVP – Service Delivery
Alka is a senior Business and Knowledge Operations leader with over 14 years of experience in driving value-led delivery across global banking and financial services. She brings deep expertise in mortgage lending, risk management, and compliance, with a proven record in leading transformation programs in areas such as model risk management, credit risk validation, underwriting, and crypto accounting. Currently serving as AVP – Service Delivery at Anaptyss, Alka oversees large global teams, ensuring operational excellence, compliance rigor, and superior client outcomes.
