SR 26-2 just changed the model risk rulebook. Here’s what Chief Credit Officers need to know before their next model review.
Why Your Profit Model Will Eventually Blow Up Your Portfolio
Your profit model isn’t broken. It just can’t see the risk that will eventually break you.
Your Credit Model Is Optimizing the Wrong Objective
Most consumer credit models are trained to predict default — not to maximize profit. These two objectives diverge in ways that quietly cost lenders millions. Here’s the diagnostic every model audit should run. The proxy problem no one talks about Binary…