The model-risk mini deck for finance AI
Recall the model-risk questions that determine whether a finance AI model is fit for use.
What is the first model-risk question? What exact decision or workflow will this model influence? Without intended use, you cannot judge the evidence standard. Intended use Validation for visibility vs. validation for action Reliance level matters The higher the reliance, the stronger the validation and monitoring needed. Objection: The vendor says the model is proprietary. The vendor says the model is proprietary, so they cannot explain it. You still need evidence before treasury or credit relies on it. Your line We do not need source code. We need intended use, back-test design, segment errors, limitations, overrides, and monitoring. Accepting secrecy…
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