Evolving model risk management in the age of AI
Banks are quietly solving the biggest blocker to AI adoption: model risk. Here's what they're doing differently.
Why it matters
As enterprises scale AI deployments, model risk management has become a critical governance lever. This McKinsey survey signals how financial institutions are building confidence in AI systems through resilience frameworks—a pattern that will likely cascade across regulated industries.
The key facts
7 to knowMcKinsey survey on bank model risk management practices
Focus on resilience as enabler of AI adoption
AI governance and risk frameworks emerging as competitive advantage in financial services
Shift from AI skepticism to confident deployment in regulated sectors
Focus on resilience and risk controls in AI adoption
Banks treating AI risk management as value creation lever rather than pure compliance cost
Implicit industry standardization signal for AI governance in financial services
Go to the source
McKinsey Insightsmckinsey.com
Publisher excerpt: Our recent survey reveals how banks are evolving model risk management: by strengthening resilience, unlocking more confident AI adoption—and turning it into a reliable source of value creation.