AI models prompt banks to strengthen governance
Risk managers want ‘transparency and clarity’ around AI-based models
Banks are tightening up their governance and control processes in response to the proliferation of artificial intelligence (AI)-based trading models.
“The angle where we’re coming from right now is basically redefining some of our governance standards around the use of these models. [We’re] being very precise about what brings your outcomes, [and] what triggers [and] what thresholds are going to be monitored,” said Manan Rawal, head of US model risk management at HSBC. “We have these
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