A step up in model management is necessary. Given the increased volume of models, automation is key.
The growing use of AI and machine learning poses an even greater need for robust model governance as it increases value from models, but also introduces additional risk and complexity.
As the industry looks to more and more digitization and automation, correspondingly more models are developed across different units, and it becomes ever more crucial to define robust end-to-end processes, to reduce organizational redundancies and foster consistent model governance at entity and group levels.
Historically, the development of models has often been reactive, lacking integrated governance and standardization.
Globally, regulators are raising the bar on every aspect of modeling. The reputational and financial penalties of failure are potentially significant.
Building on our vision for model management of the future, the EY Model Management Platform (EY MMP) is a testimonial of EY engagement in shaping the industry solution for the management of models across their life cycle.