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AI is Redefining Model Risk and Banks Must Adapt Fast
As artificial intelligence reshapes financial modeling, model risk management is evolving beyond traditional validation. Arpit Jain of NatWest Group explains why new skills, stronger collaboration across lines of defense, and deeper lifecycle oversight are essential for responsible innovation.
Mar 16, 2026
Arpit Jain
Arpit Jain, Model Risk Validation Officer,, Natwest Group 
Tags: Model risk
AI is Redefining Model Risk and Banks Must Adapt Fast
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
  • Model risk management is evolving rapidly as AI and advanced analytics reshape financial modeling
  • The industry faces a widening skills gap between technical experts and governance specialists
  • Effective validators must bridge code, controls, and committees to challenge models credibly
  • Collaborative training and rotational programs help develop cross functional model risk talent
  • Early engagement between first and second lines improves oversight without weakening independence
  • The future of MRM will involve deeper oversight across the full model lifecycle
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