25 Jan Cyborg model validation
Like the Titanic being unsinkable, banks’ models were meant to be unbreakable – able to withstand any scenario. They’d been perfectly validated, yet in the face of COVID-19, they failed. So how should we fix them? Instead of trying to fit square-pegged data into round-holed models, banks need to modify the models themselves, combining the best of the human approach, with the best of what machines have to offer. Call it “Cyborg Model Validation”. Only then can banks be prepared for the next unknown. To read the full story, read our CEO, Alla Gil’s, latest column for the Global Association of Risk Professionals here.