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Article
AI Governance Redefines Model Risk Management Across Banking
Model risk management is undergoing a structural shift as AI adoption accelerates. Odile Hounkpatin explains how governance, validation, and oversight must evolve to address ethical, operational, and societal risks, transforming MRM into a cross-functional, enterprise-wide capability.
May 06, 2026

Odile Hounkpatin, Independent Consultant, Former Head of Model Validation, Santander
Tags:
Model risk
The views and opinions expressed in this content are those of the thought leader as an individual and are not attributed to CeFPro or any other organization
- AI is transforming
model risk management into a cross-functional discipline
- Governance now
involves legal, IT, compliance and wider stakeholders
- Continuous validation
replaces traditional pre and post deployment checks
- Firms must track
model context and decision impact, not just models
- Shift from accuracy
metrics to fairness, explainability and impact measures
- Dedicated AI governance structures becoming standard across institutions
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