Risk Benchmarking
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Welcome to Risk Benchmarking, a new research service scrutinising op risk practices at a range of financial institutions. Each quarter, we’ll share some of the findings from one of four cohorts – G-Sibs, other banks, asset managers and insurers, and FMIs.
Participants get to see all the data – message us for details: benchmarking@risk.net
Banks building GenAI governance in parallel to model risk
Risk Benchmarking: Majority have established AI governance committees, but ownership is fragmented
Lower-risk models face excessive reviews, banks say
Risk Benchmarking: Validation workload stretching teams, amid emerging regulatory divergence
Model risk managers see growing regulatory divergence
Risk Benchmarking study finds most banks expect easing of model risk supervisory scrutiny in the US, but tightening in Europe
Many banks do not document failure plans for Tier 1 models
Risk Benchmarking: Strong predeployment validation gives way to ad hoc escalation of breaches, even at some large lenders
Model risk managers are being asked to do more with less
Risk Benchmarking study finds function being handed expanding AI workload, on flat resources
Benchmarks
Model risk
Operational risk
Top 10 Op Risks
Climate risk
ALM
XVAs
Enterprise risk
Explore the data
Scaling model risk
Banks’ model inventories vary hugely. Some functions manage just 25-74 models, including the odd superregional, while one US G-Sib maintains between 2,500-4,999 models.
Check out more findings from Risk.net’s Model Risk Management study here.
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