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What is Model Risk and Why Does it Matter?

DataRobot Blog

With the big data revolution of recent years, predictive models are being rapidly integrated into more and more business processes. When business decisions are made based on bad models, the consequences can be severe. As machine learning advances globally, we can only expect the focus on model risk to continue to increase.

Risk 111
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Running Code and Failing Models

DataRobot

Even if all the code runs and the model seems to be spitting out reasonable answers, it’s possible for a model to encode fundamental data science mistakes that invalidate its results. These errors might seem small, but the effects can be disastrous when the model is used to make decisions in the real world.

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Automating Model Risk Compliance: Model Development

DataRobot Blog

Addressing the Key Mandates of a Modern Model Risk Management Framework (MRM) When Leveraging Machine Learning . The regulatory guidance presented in these documents laid the foundation for evaluating and managing model risk for financial institutions across the United States.

Risk 64
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What is transformational leadership? A model for motivating innovation

CIO Business Intelligence

This model encourages leaders to demonstrate authentic, strong leadership with the idea that employees will be inspired to follow suit. For a deeper look at the transformational leadership model, see “ How to apply transformational leadership at your company.”. Transformational leadership model.

Modeling 145
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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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Rising Tide Rents and Robber Baron Rents

O'Reilly on Data

From 2000 to 2011, the percentage of US adults using the internet had grown from about 60% to nearly 80%. Some of those innovations, like Amazon’s cloud computing business, represented enormous new markets and a new business model. The market was maturing. By the end of 2012, it was up to 82%. These companies did continue to innovate.

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Embracing sustainable IT unlocks environmental, business, and financial benefits

CIO Business Intelligence

Its use of renewable energy, sustainable technologies, and recycling is common in homes and businesses throughout the country, as well as the neighboring Nordic region, making Norway a role model of environmental stewardship. Dell Technology Rotation increases liquidity by moving IT from a CapEx model to an OpEx model.

IT 120