Evolving Model Risk Frameworks for a More Complex and Dynamic Landscape

In this interview, Liam Davies explores how organisations are responding to the rapid evolution of model risk, driven by advances in AI, machine learning and data availability. He reflects on the challenges of maintaining robust validation processes and clear model oversight while enabling innovation across the business.

He also discusses the need for greater integration across risk, technology and business teams, as well as the importance of embedding model risk considerations throughout the model lifecycle. As regulatory scrutiny continues to increase, Davies emphasises that strong governance, transparency and adaptability will be critical to building resilient and effective model risk frameworks.