From gatekeeper to coach: model risk bids to reinvent itself

Model Risk Benchmarking data reveals a function in flux, grappling with resource cuts, AI models, regulatory divergence

This piece is part of a series benchmarking bank model risk management practices. Sign up for Risk Benchmarking emails here.

Some years ago, a model risk manager at a large bank asked an uncomfortable question. The bank had moved its credit decisioning onto opaque machine learning models. But fair lending rules require banks to tell declined applicants why they were turned down, and the reasons