With the increasing use and reliance on technology, automated predictive, economic, and financial models help financial institutions make faster and better business decisions. Schick, S. (2020) Making the right decisions: The importance of model risk management [online]. Available from: https://www.plantemoran.com/explore-our-thinking/insight/2020/02/making-the-right-decisions-the-importance-of-model-risk-management [Accessed on 08 April 2022]

Summarise the reasons why risk modelling is important using examples.