Model Risk Management (MRM)

Model Risk Management extends traditional financial-services model governance (originally built for credit-scoring and pricing models) to AI systems generally — validating models before deployment, monitoring for drift after deployment, and maintaining independent review separate from the team that built the model. APRA-regulated entities have run MRM programs for years; AI has simply expanded their scope.

Definitions are written for enterprise AI governance context, not a formal legal standard. Suggest a correction →