Model Risk Management

Model risk represents the potential for flawed models to lead to poor decisions, financial loss, or regulatory non-compliance. Without proper oversight, even well-designed models can drift or be misused. CoreAi helps organizations proactively identify, measure, and manage model risk—ensuring control across the model lifecycle and alignment with regulatory expectations like SR 11-7.

 Validation is a cornerstone of Model Risk Management, providing independent assurance that models are conceptually sound, appropriately implemented, and performing as intended. CoreAi ensures rigorous, unbiased validation aligned with SR 11-7, helping organizations detect weaknesses early, reduce risk exposure, and meet regulatory expectations with confidence. 

 Sound model development is foundational to managing model risk effectively. Poor design or undocumented assumptions can lead to inaccurate outputs and regulatory scrutiny. CoreAi helps institutions establish disciplined development practices—ensuring transparency, reproducibility, and alignment with business objectives and regulatory standards from the start. 

 Governance is the backbone of effective Model Risk Management, ensuring models are used responsibly, monitored continuously, and aligned with regulatory expectations. CoreAi helps organizations establish governance structures that enforce accountability, define ownership, and maintain control over model development, validation, usage, and retirement—reducing risk and supporting compliance with frameworks like SR 11-7.