Model risk managers squeezed
Risk.net argued model risk management is increasingly viewed as a drag — but effective teams embed risk controls into CI/CD so governance doesn't block iteration reported. The piece highlights the tension between compliance and speed as models grow in scope and complexity.
The Bank of [England published]bankofengland.co.uk its SS1/23 model-risk principles on 17 May 2024, tightening expectations for documentation, validation and governance across model lifecycles, while the [FDIC expanded]fdic.gov supervisory guidance on model risk in March 2024 to broaden regulatory scrutiny beyond traditional quantitative models. An industry survey by Experian found 67% of financial [institutions reported]experian.com difficulty meeting evolving model documentation and compliance demands in August 2024, and the Risk Management Association’s 2024 MRM [survey flagged]rmahq.org persistent frustrations with slow validation and change-management bottlenecks. Banks and fintechs are operationalising governance by shifting to continuous compliance and DevSecOps patterns that insert controls into CI/CD pipelines at commit-time, a practice described as “continuous compliance” in DevOps coverage and recommended for fintech ML pipelines by Finextra’s analysis of governance-for-ML workflows. devops.com Practical implementations include policy-as-code with Open Policy Agent, automated SAST/SCA scans and pipeline risk-scoring tools (documented by Microsoft’s Defender CSPM guidance and OpsMx’s risk-scoring write-up), and client case studies where centralised MLOps architectures used CI/CD to automate validation, versioning and audit evidence for credit-risk models. techcommunity.microsoft.com
