Model Risk Management (MRM) at a glance
The US SR 11 7 guidelines define a model as a quantitative method, system, or approach that applies statistical, economic, financial, or mathematical theories, techniques, and assumptions to process input data into quantitative estimates.
Model Risk Management has been a significant beneficiary of technology advances over the last 30 years. Let’s take a look at some of the highlights (as well as some of the negatives) of this evolution.