Model risk

The risk of financial loss or incorrect decisions caused by errors, flawed design, or inappropriate application of analytical models.

Source: Artificial Intelligence in the Financial Sector of the Global Economy: Implementation Directions and Financial Stability Risks (Academic research) · p.6

Reports that mention Model risk

Basel III and the Transformation of the Banking Model: A Theoretical Analysis of Trade-offs Between Solvency, Liquidity, Funding and PerformanceAcademic research
The Architecture of AI Governance in Banking: Bridging Compliance and Explainability GapsAcademic research

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