The Future of Model Risk Management
3 December 2025·10 min
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The world of model risk management is changing faster than ever. Over the past eleven sessions, we have explored everything from model development and validation to governance, monitoring, inventory management, and real world case studies. In this final session, we look ahead to the future of the discipline and explore the trends that will shape model risk management in the years to come.
Model risk has evolved from a specialist technical function into a central pillar of banking governance. With AI, automation, regulatory reform, and new risk types emerging, the future of MRM will demand enhanced skills, stronger oversight, and smarter technology. This session prepares you for what comes next.
📌 What You Will Learn in This Session
• The rise of AI and machine learning in MRM
Understand how neural networks, ensemble models, and adaptive techniques are changing validation, monitoring, and governance.
• Evolving regulatory expectations
Explore how PRA SS1 23, the FCA, MAS FEAT, the EU AI Act, and global regulators are reshaping how firms manage algorithmic risk.
• Real time and adaptive modelling
Learn why models that update continuously require new forms of monitoring, continuous validation, and automated assurance.
• The growing importance of data governance
See why data lineage, quality controls, and metadata platforms will be essential to future model performance.
• Model risk quantification
Discover how firms are beginning to measure model risk exposure using dashboards, stress scenarios, and capital allocation.
• Cross risk integration
Understand how model risk intersects with operational risk, cyber risk, conduct risk, reputational risk, and ESG.
• Third party and vendor model risk
Learn why externally built models require new controls, transparency rights, and replication testing.
• Climate and ESG modelling challenges
Explore why climate risk models will be a major focus area for regulators and financial institutions.
• The cultural shift in model governance
See why transparency, challenge, and communication are becoming core expectations for model risk functions.
• Skills and capability of the future
Know what professionals need to succeed in next generation model risk environments.
🎯 Who This Session Is For
• Model developers, quants, and data scientists
• Model validators and model risk officers
• Risk managers, auditors, and governance professionals
• Senior leaders responsible for oversight and strategic decision making
• Anyone looking to future proof their career in risk and analytics
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🔍 Keywords
future of model risk management, AI model governance, machine learning validation, model risk trends, PRA SS1 23, SR 11 7, ECB model risk, MAS FEAT, EU AI Act, real time modelling, continuous validation, model monitoring, data governance, climate risk models, ESG modelling, model risk quantification, third party model risk, AI fairness, explainability, the industry portal
model risk managementfuture of model riskAI governancePRA SS1 23ECB TRIMSR 11 7AI model validationmachine learning riskmodel risk trendsbanking regulationmodel governancealgorithmic transparency
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