Compliance Standards & Model Risk

When applying ISO management systems for compliance (ISO 19600), anti-bribery (ISO 37001) and/or similar ‘in control’ tooling with regard to integrity management and business conduct, so called ‘Model Risk’ comes into play. Oversimplification, inappropriate model choice, errors in a model or misuse of a model may lead to the wrong picture, providing comfort in false security only. For ‘The insights of a good model risk management framework’, see: Marie Gothardt and Martijd de Groot in Zanders Magazine 2018-2.