Granularity, AI & the Rise of Integrated Risk: Wei Chen’s Post-Event Deep Dive

In this interview, Wei Chen explains how balance sheet risk management is evolving rapidly as firms move toward integrated, scenario-based approaches that span liquidity, capital, credit, and ALM. He notes that modern computing power has eliminated previous technological limitations, enabling richer data granularity and improving cross-risk reconciliation. This shift allows banks to align with regulatory expectations more easily while enhancing decision-making at both portfolio and counterparty levels.

Chen also details two major modelling trends reshaping the industry: streamlined horizontal model lifecycle management and consistent vertical model application across risk functions. He emphasizes the rise of AI - both machine learning and generative AI - as a transformative force across modelling, forecasting, and operational efficiency. Reflecting on the event itself, he highlights the value of industry alignment, shared experiences, and collaboration, which are accelerating progress toward more resilient and technology-enabled balance sheet management frameworks.