From credit scoring and loss forecasting to regulatory reporting and asset valuation, model risk management (MRM) is essential for regulatory compliance, trustworthy decisions, and risk mitigation. However, outdated legacy risk and governance systems are ineffective.
Legacy MRM systems lack full AI lifecycle governance and rely on manual processes and excessive documentation, which makes them costly and cumbersome. They cannot govern new ‘black box’ technologies like GenAI, which makes it difficult to explain decisions to regulators. As more models are used, dependencies increase, allowing small inaccuracies to harm downstream decisions. Often, legacy systems must be re-built to comply with new regulations (e.g., Federal Reserve SR 11-7, SEC Rule on AIML, etc.). That is why modern financial institutions need a modern approach to MRM.
Domino Governance modernizes and operationalizes MRM processes with one system of record that adapts to current and future regulations, guarantees AI reproducibility for audits, and integrates model monitoring for model accuracy, reliability, and proper use.
How to modernize model risk management with Domino Governance:
ONE SYSTEM OF RECORD
Domino provides a centralized repository and trusted system of record for comprehensive model cataloging, offering visibility into model lineage, model versions, changing data, and other dependencies. This allows financial institutions to track and manage their entire model portfolio efficiently.
AUTOMATED EVIDENCE GENERATION
Domino automatically records and generates AI evidence (e.g., model metadata, code changes, and data lineage) and guarantees reproducibility necessary for audits. By providing an audit trail, Domino significantly reduces the time and costs associated with preparing for regulatory examinations and internal audits.
As a head of data science and AI, you've got to have a governance process that works across the business, because there are different types of AI. We’re incentivizing projects not to shy away from governance — and designing some of the platform work in Domino, where it’s within the development process by design.
We can now go back to any project at any point in time and see what decision was made, and recreate that model if needed, which is huge in explaining to both management and regulators how we built a particular model — including what data went into it and what variables it identified.
Chief Data Scientist
Allstate
CENTRALIZED POLICIES & APPROVALS
Domino records evidence of policy adoption, provides a 360° view of all policies, artifacts and the context of work, and alerts reviewers, asking for action at the right time. Smart automation reduces the risk of inconsistencies, and saves time by accelerating policy reviews and updates.
AUTONOMOUS POLICY ENFORCEMENT
Domino accelerates policy adherence using templates and checklists, and enforces policies using automated scripts, to maintain consistent risk management practices across all models. Domino's structured approach minimizes the risk of policy violations, helping financial institutions maintain compliance and reduce potential regulatory issues.
INTEGRATED MODEL MONITORING
Domino Integrated Model Monitoring detects and records traffic, drift, and health trends for all production models with out-of-the-box and custom metrics. The right people are notified at the right time when drift, divergence, and data quality checks exceed thresholds. When retraining is needed, it is easy to drill down into model features and quickly modify, retrain, and redeploy models.
