2026-01-16 Return to Briefing

Strategic Model Risk Management (MRM)

Strategic Model Risk Management (MRM)

MRM is evolving from a compliance checkbox to a strategic moat. Continuous monitoring, drift detection, and bias testing are now operational fixtures required to avoid costly breaches and pass regulatory reviews.

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Modern MRM requires enterprise-wide model inventories and risk-proportional classification. With global convergence on frameworks like NIST AI RMF, firms must balance model performance with interpretability and manage third-party concentration risks from cloud AI vendors.