Model Risk and Model Validation in Financial Risk Management - Chapter 16

Learn essential concepts of model risk management and validation in this 19-minute FRM Part 2 video lecture covering model definitions, risk exposures in financial institutions, and best practices in model risk management. Explore key characteristics of models, understand conceptual errors, and analyze real-world case studies that highlight critical lessons in model risk management. Gain practical insights into the role of model risk management functions and discover how to implement effective validation processes. Master the fundamentals needed to identify, assess, and mitigate model risks through detailed examples and comprehensive case study analysis, designed specifically for FRM Part 2 (2025) Operational Risk certification preparation.