Model Complexity vs Model Governance
Formalise a delegated-authority matrix tied to financial and regulatory risk thresholds, reserving executive escalation for decisions above those limits.
CyberTRIZ analysis · Banking contradiction G013 · one of 8,235 worked contradictions published by CyberTRIZ.AI
Regulations
Business Context
Advanced quantitative models improve measurement of credit, market, and operational risk, but increasingly complex models require stronger governance and validation.
Banking TRIZ Resolution
Separate model development from governance by introducing independent validation, continuous monitoring, and explainable model documentation.
Recommended Principles
Principle 13 - Inversion
Principle 23 - Feedback
Principle 40 - Composite Materials
Expected Outcome
Better model quality
Stronger governance
Lower model risk
TRIZ principles applied
P13 InversionP23 FeedbackP40 Composite Materials