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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
Odile Hounkpatin, Independent Consultant, Former Head of Model Validation, Santander
Tags: Model risk
AI Governance Redefines Model Risk Management Across Banking
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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