Model Risk Management in the Age of AI

2026

Open publication workspace · Sign in to read the full PDF.

AI-generated summary

1) This white paper is essential for financial institutions to understand how to adapt their model risk management frameworks to the evolving landscape of AI, ensuring safe and compliant deployment.

2) * Explores the evolution of models from traditional to AI systems and the new risks introduced by Generative AI.
* Proposes a governance-centric MRM paradigm with practical controls like dynamic guardrails and real-time monitoring.
* Presents a case study of Moody's Early Warning System to demonstrate operationalizing MRM for AI.

3) AI, Model Risk Management, Governance, Generative AI, Financial Services

Check the original publication for accuracy and context.