Selecting the Right AI Stack and Vendors for Operational Risk Management

Selecting the right artificial intelligence (AI) technology stack and vendors is fundamental to the success of operational risk management initiatives. A systematic, criteria-driven approach helps ensure robust risk mitigation, compliance, and long-term value. AI Model Evaluation Framework Technical Performance Criteria Organizations must thoroughly assess AI solutions across multiple technical dimensions: Model Accuracy and Performance Precision and Recall Metrics: Evaluate the model’s ability to correctly identify true risks while minimizing false positives and negatives, crucial for applications like fraud detection and regulatory monitoring. F1 Score Analysis: Balances precision and recall to assess model performance across varying risk scenarios. AUC-ROC Curves: Measures how well the