Objectives On completion of this tutorial, you will be able to:

• Define a model and list the key stages of the model lifecycle
• Recognize why model risk is a concern for banks
• Identify the main regulatory requirements covering models
• Recognize the importance of model risk management
• Recall the role of AI and machine learning in model development

Tutorial Overview Banks use models for a range of business and risk management objectives, such as credit decision making and the calculation of capital requirements. This tutorial looks at the lifecycle of a typical model, the management of model risk, regulatory requirements surrounding models, and the role of AI and machine learning in model development. Prerequisite Knowledge Risk Management - Risk Types & Measurement Tutorial Level: Intermediate Tutorial Duration: 50 minutes