Model risk management

Model risk management is the discipline of identifying, validating, monitoring and controlling the risk that a model, whether statistical, machine-learning or generative, produces wrong or misused outputs that cause harm. It began in banking and is now applied to AI generally.

Why it matters at a CIO Cafe table

Terms like Model risk management turn up at tables because the disagreement is usually about scope, not definition. Agreeing what the word means is the cheapest way to shorten a decision — which is why every table starts by framing the question in plain language.