← All news
Topic
Model Risk
Model risk refers to the potential for financial loss, regulatory penalties, or operational failures resulting from flaws, biases, or misuse of AI/ML models in production environments. In enterprise governance, managing model risk is critical because models increasingly drive high-stakes decisions in lending, trading, fraud detection, and customer service, where errors can cascade across large populations. Effective model risk frameworks require ongoing monitoring, validation, and governance to ensure models perform as intended across diverse data conditions and comply with regulatory expectations around explainability and fairness.
1 item
