From gatekeeper to coach: model risk bids to reinvent itself

The world of model risk is undergoing a significant transformation as institutions strive to adapt to resource reductions, the rise of AI models, and differing regulatory landscapes. Traditional gatekeepers in this field are pivoting to coaching roles, emphasizing collaboration and expertise over rigid oversight. This shift not only reflects a strategic response to current challenges but also promises to enhance the overall robustness and reliability of risk management practices. By embracing new roles, model risk professionals aim to drive innovation and compliance in an increasingly complex regulatory environment.