Banking models after COVID-19: Taking model-risk management to the next level

Marie-Paule Laurent, Olivier Plantefeve, Maribel Tejada, and Frédéric Van Weyenbergh, Mckinsey & Company

“The speed of banks’ reaction to the crisis has triggered new risks Like companies in other sectors, financial institutions were unprepared for a locked-down economy and have scrambled to adjust. Rapidly, they are taking model-mitigation actions, often in an uncoordinated way.”