Outsourcing Models, Onboarding Risk: Findings From ProSight’s 2025 Model Risk Management Survey

As banks expand oversight of financial and operating risks, their risk management teams are increasing their use of risk models, analytical tools, and diverse data sets, including those sourced from third-party vendors. They often supplement internal models with those from third parties, at times for efficiency and sometimes to access more sophisticated data and analytics.

Using third-party models presents banks with unique regulatory, analytical, and operating challenges. …