Description:
Model risk is one of the most critical and often misunderstood areas of oversight in financial services, especially for institutions operating in high-risk environments. Whether you are a bank, credit union, fintech, or MSB, if you rely on data- driven models to make decisions, you are managing model risk whether you realize it or not.
This session cuts through the noise to explain what model risk really is, why it’s especially important in high-risk sectors, and how to build a framework that can stand up to regulatory and operational scrutiny. From foundational concepts to real-world examples of what can go wrong, this is a practical guide for anyone responsible for modeling, oversight, governance, or compliance.
Who is this Designed for: Professionals in compliance, risk, audit, and analytics roles at fintechs, MSBs, and community banks who use or oversee financial, operational, or AI models and want to strengthen model governance and avoid common pitfalls.
Agenda:
Defining Model Risk and Why It Matters: Understanding how model risk arises and where it shows up in your institution.
Key Components of an Effective Model Risk Framework: Covering model inventories, validation processes, governance, and documentation.
Where Things Go Wrong: Exploring common model risk management failures and how to avoid them.
Model Oversight Across the 3 Lines of Defense: How to get business, compliance, and audit working together.
Right-Sizing Your Approach: Tailoring your program to match your institution’s size, complexity, and resources.
Tips for adapting your framework as technology, data, and expectations evolve
By the end of this webinar, you will know how to:
Understand model risk and why it’s critical, especially in high-risk financial environments
Build an effective model risk framework, including inventories, validation processes, governance, and documentation
Identify common pitfalls and failures in model risk management and learn how to avoid them
Coordinate oversight across the three lines of defense: business, compliance, and audit
Tailor your model risk program to match your institution’s size, complexity, and resources