Navigating Vendor AI Risk: MRM & TPRM Strategies TLE

This webinar will equip financial institutions to strengthen AI governance by integrating model risk management and third-party risk management practices that reduce vendor risk, support regulatory compliance, and prepare for evolving examiner expectations.

Your institution is buying AI faster than it can govern it: inside your core system, your fraud tools, your lending decisions, and your accountholder services. The trap most community financial institutions miss is that when the AI comes from a vendor, the technology is outsourced, but the accountability is not. The regulatory, reputational, fair-lending, and operational risk stays on your balance sheet, and “the vendor handles that” is not a defense your examiner, or a plaintiff's attorney, will accept.

This session will show you how to close that gap by bringing two disciplines together: model risk management, which asks whether the AI itself is sound and fair, and third-party risk management, which governs the vendor behind it. You will learn how to right-size validation for black-box models you cannot see inside, what to demand in due diligence and contracts, how to spot concentration and fourth-party exposure hiding across your vendors, and how to build governance you can actually staff. With the model-risk rulebook rewritten in 2026 and new state AI laws taking effect in early 2027, you will leave knowing what has changed, what is coming, and what to do before your next exam.

NOTE: All materials are subject to copyright. Transmission, retransmission, or republishing of any webinar to other institutions or those not employed by your institution is prohibited. Print materials may be copied for eligible participants only.