BoE model risk rule may drive real-time monitoring of AI

New rule requires banks to rerun performance tests on models that recalibrate dynamically

Bank of England

New rules from the Bank of England (BoE) on model risk management could push banks towards much more intensive monitoring of artificial intelligence and other algorithms that dynamically recalibrate, experts say.

“Algos and AI continuously operate, so it’s necessary to ensure they behave as expected, and that puts lots of pressure on us,” says Karolos Korkas, head of algorithmic trading model risk at Nomura. “We might just need to move into more real-time monitoring.”

The BoE’s Prudential

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here