Adapting Model Risk Management for an Era of Increasing Complexity

In this interview, Niels Baars explores the challenges organisations face as model ecosystems become more complex and interconnected. He reflects on how regulatory scrutiny is driving greater expectations around model governance, documentation and validation, while also requiring institutions to maintain flexibility as new technologies emerge.

He also discusses the impact of AI and machine learning on model risk, including the need for enhanced transparency and oversight. As institutions balance innovation with control, Baars emphasises the importance of integrated frameworks that support consistency, resilience and effective decision-making across the model lifecycle.