Managing the risks associated with models.

ACCOUNTANTS; FINANCIAL risk management; RISK management in business; DEFAULT (Finance); ACCOUNTING firms

The article focuses on the role of accountants in all industries in the management and mitigation and of model risk at their organizations. Information about the costs and challenges linked with the use of model risk, which is the risk of financial loss, erroneous financial statements, improper managerial decisions, or damaged organizational reputation, resulting from poorly built, used, or controlled models, is presented.