The Challenges of Model Risk Management Oversight of Cybersecurity

At banks, cyber risk has traditionally been assessed and managed by the IT risk function with oversight by the operational risk function. Recently, though, more ownership of the development, implementation, and use of cybersecurity tools and models has been shifting to model risk management functions.

This is partly driven by the growing sophistication of cybersecurity models, which—like other models—increasingly employ artificial intelligence and machine learning.

Consider…