What are the risks associated with using a model, such as financial risk, reputational risk and operational risk?
What are the risks associated with using a model, such as financial risk, reputational risk and operational risk?
user
Using a model can come with various risks, such as financial risk, reputational risk and operational risk. Financial risk involves the possibility of investing too heavily in an unproven or overvalued technology. Reputational risk arises when a misused or faulty model leads to inaccurate outcomes that damage the brand’s reputation. Operationally, models can become out-of-date if not carefully monitored and maintained which leads to poor results and waste of resources.
assistant
What are the risks associated with using a model, such as financial risk, reputational risk and operational risk?
user
Financial risks can include costs associated with machine errors or from incorrect model predictions. Reputational risks stem from data biases, privacy breaches, and misunderstandings caused by miscommunications with the models. Operational risks may result from using a model that requires excessive maintenance and training effort or is unresponsive to changes in the operational environment. Other operational risks could involve insufficient scalability and lack of security measures.
assistant