What is Model Risk Management?

Model Risk Management (MRM) originated in financial services but now applies broadly to AI and machine learning deployments. It ensures that models used for decision-making—such as lending, insurance, or diagnostics—are safe, validated, and performing as intended.

MRM programs typically include:

• Model inventory and classification
• Risk rating based on business impact and complexity
• Validation of model accuracy, fairness, and performance
• Documentation of development and testing methods
• Ongoing monitoring for drift, bias, or security issues

With generative AI, MRM also covers risks like prompt injection, hallucination, and model misuse. These threats are dynamic and harder to predict, making continuous risk monitoring essential.

How PointGuard AI Helps:
PointGuard provides a centralized model inventory with built-in risk scoring, red teaming, and continuous posture monitoring. Models can be tagged, assessed, and linked to policies. Detailed logs and dashboards support validation and compliance processes across regulated industries.

Explore more: https://www.pointguardai.com/ai-discovery 

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