{"id":128141,"date":"2023-11-13T14:10:46","date_gmt":"2023-11-13T14:10:46","guid":{"rendered":"https:\/\/feedzai.com\/?p=128141"},"modified":"2024-04-09T09:12:08","modified_gmt":"2024-04-09T09:12:08","slug":"enhancing-ai-model-risk-governance-with-feedzai","status":"publish","type":"post","link":"https:\/\/feedzai.com\/blog\/enhancing-ai-model-risk-governance-with-feedzai\/","title":{"rendered":"Enhancing AI Model Risk Governance with Feedzai"},"content":{"rendered":"

[vc_row row_height_percent=”0″ override_padding=”yes” h_padding=”2″ top_padding=”1″ bottom_padding=”2″ overlay_alpha=”50″ gutter_size=”3″ column_width_percent=”100″ shift_y=”0″ z_index=”0″][vc_column width=”1\/1″][vc_row_inner][vc_column_inner width=”1\/12″][\/vc_column_inner][vc_column_inner width=”10\/12″][vc_single_image media=”128142″ dynamic=”yes” media_width_percent=”100″ uncode_shortcode_id=”140946″][\/vc_column_inner][vc_column_inner width=”1\/12″][\/vc_column_inner][\/vc_row_inner][vc_row_inner][vc_column_inner column_width_percent=”100″ gutter_size=”3″ overlay_alpha=”50″ shift_x=”0″ shift_y=”0″ shift_y_down=”0″ z_index=”0″ medium_width=”0″ mobile_visibility=”yes” mobile_width=”0″ width=”2\/12″][\/vc_column_inner][vc_column_inner width=”8\/12″][vc_custom_heading heading_semantic=”h3″ text_size=”h3″ text_weight=”400″ uncode_shortcode_id=”177611″]Artificial intelligence (AI) and machine learning are pivotal in helping banks and institutions stay ahead of fraud<\/a> and financial crime tactics. However, advanced technologies come with their own set of challenges, especially when it comes to <\/span>model risk governance<\/span><\/a>, a comprehensive and structured approach to managing the risks that arise from the development, deployment, and continuous operation of quantitative AI models.<\/span>[\/vc_custom_heading][vc_column_text uncode_shortcode_id=”146477″]Learn the critical challenges with current AI model risk governance frameworks and how Feedzai is making a difference.<\/span><\/p>\n

The Challenges with Current AI Model Risk Governance Frameworks<\/span><\/h3>\n

Many banks face two key challenges regarding AI model risk governance frameworks.<\/span><\/p>\n

1. Self-Learning and Evolving Models<\/span><\/h4>\n

AI models are not static entities. They self-learn and evolve after exposure to real-world scenarios.\u00a0<\/span><\/p>\n

This dynamic nature can be a double-edged sword. On the one hand, it helps catch unexpected anomalies that traditional systems might miss. But on the other hand, it poses a challenge for fraud teams. Banks must ensure that these models continue to produce meaningful results.<\/span><\/p>\n

2. Understanding Supervised and Unsupervised Models<\/span><\/h4>\n

Two primary types of machine learning models come into play here: supervised and unsupervised.\u00a0<\/span><\/p>\n