How do financial institutions balance the desire to optimise model validation processes with meeting user expectations and regulators’ requirements?
As model use continues to proliferate throughout organisations, financial institutions (FIs) are being forced to consider how to optimise operations for their independent validation units (IVU). Increasing breadth of model usage and the greater complexity of model forms (e.g. AI, machine learning, etc) are incentivising institutions to explore optimisation in three areas: automation, standardisation and centralisation.
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