Compliance
Model Risk Management (MRM)
Financial services framework for managing risks from quantitative models including AI/ML.
Definition
A risk-focused lifecycle framework for the development, validation, deployment, monitoring and retirement of AI models, encompassing governance, documentation, independent challenge and operational controls to manage model-related risks in financial institutions.
Related Terms
SR 11-7
Federal Reserve guidance on model risk management applicable to AI/ML in banking....
AI Governance
The policies, structures and processes that assign responsibility, manage risk, and ensure lawful, ethical, and accountable development and use of AI....
Model Governance
Enterprise framework for oversight, approval, and lifecycle management of AI/ML models....