The financial industry is evolving at an unprecedented pace. Regulatory frameworks are becoming more complex, customer expectations are shifting and financial risks are emerging in new and unexpected ways. Because of this, relying on outdated risk management systems is no longer sustainable. Banks must adopt data-driven strategies to remain competitive
One of the lesser-known effects of COVID-19 has been on analytical risk models. Around the world, the pandemic has created a new reality. The situation became so unpredictable that financial institutions’ risk models lost their ability to make accurate predictions. Past performance, it turned out, was very definitely not a
Today’s business banking models are changing. Internal rating models enjoyed the spotlight for a long time, but new topics are already catching on. Machine learning and artificial intelligence are key new elements in addition to traditional techniques for model development. EU and international regulators have also taken an active interest
