Balancing Automation and Human Judgment in Model Risk
As automation expands in model risk management, human judgment remains essential. Tingting Shi explores the limits of automation, regulatory challenges with vendor models, and the evolving role of AI in validation and governance.
Tingting Shi shares insights from over 15 years in quantitative finance, emphasizing a risk-based approach to model governance.
While automation supports standard components of model validation, human expertise remains vital - especially with dynamic risk profiles. She highlights the growing reliance on vendor models and the regulatory disconnect with emerging technologies like generative AI.
Going forward, enhanced monitoring and adaptive frameworks are key to responsibly integrating advanced models into risk management strategies.
You are watching a preview. Sign in to watch the full interview.