Model Risk Management Lifecycle Overview

Brian Douglas

Watch an overview of model risk management, a critical process for financial institutions to manage the risks associated with their decision-making models, impacting areas such as pricing, credit scoring, and fraud detection. Learn about models’ potential risks, such as errors, biases, and misuse, leading to unreliable business decisions. Be introduced to Modelscape, a model risk management solution by MathWorks, to manage these risks, particularly when handling numerous models at different lifecycle stages. Model risk management can be broken into six components: development, validation, testing, deployment, monitoring, and governance, each addressing different risk aspects in a model’s lifecycle. You will gain insight into how risks are introduced at each stage and the necessity of an enterprise-level framework for managing these risks effectively.