Auditing Model Risk Management, 2nd Edition

Auditing Model Risk Management, 2nd Edition

The guide examines the growing importance of Model Risk Management in organizations that rely on mathematical models, advanced analytics, artificial intelligence, and large language models to support business decisions and regulatory compliance. Given the potential impact of model errors, the document highlights the need for robust controls throughout the model lifecycle.

The publication also outlines the role of Internal Audit in assessing the effectiveness of the organization's MRM framework, providing methodologies and practical guidance to evaluate the design, implementation, and operation of