PREMIUM CONTENT
This is premium content, available to Connect Plus users only
Unlock this content and more with Connect Plus membership.
Join a community of professionals and get:
Join a community of professionals and get:
15% discount
on all CeFPro events.
on all CeFPro events.
Post-event access:
unlock speaker decks and audience polls.
unlock speaker decks and audience polls.
Instant insights:
Full library access the moment you sign up.
Full library access the moment you sign up.
Article
Stress testing illusions exposed as AI reshapes model risk
Traditional stress testing models are failing under extreme conditions, as AI accelerates complexity and uncertainty. Tanveer Bhatti argues that banks must rethink model risk management, focusing on resilience, human judgment, and system-level oversight to navigate cascading risks and unpredictable shocks.
Apr 29, 2026
Tanveer Bhatti, Early Stage Fintech Investor, Former Group Head of Model Risk, Revolut
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
- Traditional stress
testing models fail under extreme and systemic shocks
- Models struggle to
capture non repeatable events and hidden vulnerabilities
- Cascading risks
require network level analysis not isolated model testing
- Scenario design must
be coherent and grounded in causal mechanisms
- AI introduces new
risks and cannot detect its own errors
- Future model risk
management must focus on system resilience and failure controls
Log in to continue or register for free
WHAT'S INCLUDED:
Unlimited access to peer-contribution articles and insights
Global research and market intelligence reports
Discover Connect Magazine, a monthly publication
Panel discussion and presentation recordings
Sign in to view comments
Related insights —