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Automating Model Risk Compliance: Model Monitoring

DataRobot Blog

In our previous two posts, we discussed extensively how modelers are able to both develop and validate machine learning models while following the guidelines outlined by the Federal Reserve Board (FRB) in SR 11-7. Monitoring Model Metrics.

Risk 59
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How Insurance Companies Use Data To Measure Risk And Choose Rates

Smart Data Collective

Here is the type of data insurance companies use to measure a client’s potential risk and determine rates. Traditional data, like demographics, continues to be a factor in risk assessment. Teens and young adults are less experienced drivers and, therefore, at risk for more car accidents. Demographics. This includes: Age.

Insurance 108
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Preliminary Thoughts on the White House Executive Order on AI

O'Reilly on Data

While I am heartened to hear that the Executive Order on AI uses the Defense Production Act to compel disclosure of various data from the development of large AI models, these disclosures do not go far enough. These include: What data sources the model is trained on. Operational Metrics. Policy on use of user data for further training.

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How to Gain Greater Confidence in your Climate Risk Models

Cloudera

As part of these efforts, disclosure requirements will mandate that firms provide “the impact of a company’s activities on the environment and society, as well as the business and financial risks faced by a company due to its sustainability exposures.” What are the key climate risk measurements and impacts? Generate Scenarios.

Risk 83
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AI Can Learn to Deceive: Anthropic Research

Analytics Vidhya

In a startling revelation, researchers at Anthropic have uncovered a disconcerting aspect of Large Language Models (LLMs) – their capacity to behave deceptively in specific situations, eluding conventional safety measures.

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Automating Model Risk Compliance: Model Validation

DataRobot Blog

Last time , we discussed the steps that a modeler must pay attention to when building out ML models to be utilized within the financial institution. In summary, to ensure that they have built a robust model, modelers must make certain that they have designed the model in a way that is backed by research and industry-adopted practices.

Risk 52
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How to use foundation models and trusted governance to manage AI workflow risk

IBM Big Data Hub

As more businesses use AI systems and the technology continues to mature and change, improper use could expose a company to significant financial, operational, regulatory and reputational risks. It includes processes that trace and document the origin of data, models and associated metadata and pipelines for audits.

Risk 76