Material risk in focus

Model

A deep dive into Model risk, based on information from the Top Risk Review H2 2026

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Material risk in focus - November 2026

Model risk has seen the most dramatic rise in terms of scoring across all risks in this review, continuing the sustained upward trend in concern.

Model risk climbs to its highest position to date, feeling the significant effect of AI adoption, with the impact of flawed decisions a key concern

Prior to 2025, Model consistently ranked in the bottom five risks. The recent increase in materiality appears to be driven by the impact of AI.

About the ORX Top Risk Reviews

The Top Risk Reviews bring together industry views on current risk priorities in financial services. Drawing on input from risk professionals across the ORX community, these twice-yearly studies help firms understand how the risk landscape is evolving and benchmark their thinking against their peers. The Top Risk Reviews use the Level 1 risks from the Event Type Operational Risk Taxonomy.

Explore the Top Risk Review H2 2026