AI Operational Risk Assessment: A Modern Approach for Risk Managers
AI operational risk is the potential for loss or harm resulting from failures in AI systems, processes, people, or external events related to AI use. It fits within the broader operational risk category but has distinct characteristics that make standard frameworks insufficient on their own. This piece is for risk managers who know those frameworks […]
Why AI Governance is the Next Generation of Model Risk Management
For decades, Model Risk Management (MRM) has been a cornerstone of financial services risk practices. In banking and insurance, model risk frameworks were designed to control the risks of internally built, rule-based, or statistical models such as credit risk models, actuarial pricing models, or stress testing frameworks. These practices have served regulators and institutions well, providing structured processes for validation, monitoring, and documentation.