Teradata’s white paper Model Risk Management in Banking outlines the critical need for rigorous oversight of predictive models used in finance, emphasizing their role in decisions from credit approvals to business lending. Model failures, as illustrated by Zillow's 2020 home pricing losses, can cause significant financial damage. The paper presents Teradata’s Signal Framework, which supports full lifecycle model risk management including data quality monitoring, model validation, ongoing performance tracking, and governance aligned with banking regulations. Teradata ClearScape Analytics™ enhances feature quality management via a Feature Store, enabling consistent and transparent model development.

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