Credit risk managers must adapt to an evolving regulatory environment, which creates significant challenges in developing effective risk models.

Many quantitative teams are under-resourced, making it crucial to have the right personnel in place to tackle the complexities of regulatory compliance.

Effective collaboration between quantitative teams and IT departments is vital to ensure that credit risk models are properly integrated and understood within existing systems.

The implementation of credit risk models must be aligned with operational capabilities, necessitating ongoing testing and adaptation to ensure their effectiveness.