Session Focus:

In this session we plan to talk about the following aspects of MRM including an introduction and latest advancements in MRM framework.

Session Topical Coverage

Model risk management (MRM) involves the identification, assessment, and mitigation of risks associated with the use of mathematical models, including financial models, statistical models, and machine learning models. The latest advancements in MRM frameworks often focus on enhancing model validation processes, incorporating more advanced analytics, and addressing challenges related to the interpretability and explainability of complex models.

• One notable evolution involves the integration of artificial intelligence (AI) and machine learning (ML) techniques within MRM frameworks to better assess and manage risks associated with these advanced models.
• Additionally, there is a growing emphasis on understanding the broader impact of models on business decisions and ensuring alignment with regulatory requirements.
• Automation of model validation, Continuous monitoring, model governance, and the development of comprehensive model inventories are also key aspects of modern MRM frameworks.

As the field continues to evolve, organizations are placing increased importance on developing robust processes to keep pace with the rapid advancements in modeling techniques and technologies.