Model risk is sometimes an ignored risk factor mainly because we usually expect technology to work as expected or that the models are to complicated to be even questioned. However, time and again, models have failed resulting in large systemic losses.
Quote from GARP Webinar invitation;
Understanding the drivers behind model risk, and applying that knowledge, has been an ongoing challenge for regulators, financial institutions and risk practitioners. However, following the financial crisis, model risk has come under intense scrutiny, and the governance of risk model supervision, assessment and validation has taken on ever greater importance for the risk function and the financial industry as a whole. In this Webcast, our panel of risk managers and industry experts will discuss model risk management, where it has fallen short, and how it is evolving.