Models are everywhere. Many organizations use models for facilitating the decision-making process, for accounting and tax purposes, and for managing day-to-day operations. In fact, organizations are ...

The PRA’s new supervisory statement extends banks’ model risk management obligations “across all models” - not just capital and stress testing. What steps must banks take to comply? Despite last ...

The latest set of AI guidance from the Cloud Security Alliance (CSA) explores the importance of Model Risk Management (MRM) in ensuring the responsible development, deployment, and use of AI/ML models ...

The Federal Deposit Insurance Corp. issued revised model risk management guidance. The FDIC said Friday the revised guidance clarifies that model risk management should be tailored to the size, ...

We propose a methodology for assessing model risk and apply it to the implied volatility function (IVF) model. This is a popular model among traders for valuing exotic options. Our research is ...