Model Risk and the Human Element

Model risk exposes an organization to subjective decision making. There is an element of the human factor in model risk.

For this assignment, use what you have learned from your readings, research, and lecture notes to develop a 2-3 page paper explaining the human component in model risk.In your paper be sure to address the following:

• Explain the human component in Model Risk
• As a consultant, list which business departments you would build relationships with to help minimize those risks.
• How would you utilize those departments? Feel free to share information learned from previous courses (such as Human Resources, Training and Development, Accounting, Finance, etc).