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By Roderick Powell, Senior Vice President – Head of Model Risk Management, Ameris Bank
How have you seen technology risk evolve over the last few years?
I have seen increased attention to technology risk from banks and regulators over the last few years. This is primarily due to banks embracing robotic process automation and digitalization. The Covid pandemic significantly increased the adoption of automation/digitalization by banks. Therefore, there is a growing awareness of the risk these new initiatives pose. There is consensus on which department should oversee technology risk. Traditionally, bank IT areas have been responsible for managing technology risk. However, there are some banks that recognize the potential benefit of having a department that is independent of technology initiatives, such as Model Risk Management, play a role in managing technology risk.