Credit Scoring using Digital Footprints: Principles for Model Risk Management
Models sit at the centre of modern decision-making, risk management, and operational processes. From credit scoring and capital planning to fraud detection and customer personalization, they help organizations turn data into actionable insights. However, as organizations rely more heavily on models — and as these models become increasingly complex — the risks they carry also grow. Poor design, inadequate validation, misuse, or neglect can undermine not only a model’s performance but also stakeholder trust and regulatory compliance.
This document outlines a practical framework for managing model risk. It outlines clear principles and practices to help ensure that all models — regardless of type, complexity, or origin — remain reliable, transparent, and aligned with both business objectives and regulatory expectations. Click to READ MORE
