The evolution of model risk management

One of the fastest growing concerns on insurers’ enterprise risk agenda is model risk management. From being a phrase that primarily actuaries and other modellers used, “model risk” has become a major focus of regulators and the subject of intense activity and debate at insurers. How model risk management has evolved from ad hoc efforts to its current proactive stage is an interesting story. But more interesting still is what we believe could be its next stage – generating measurable business value