AI Model Risk Management for Asset Managers
One Biased AI Trading Decision = $50M+ Loss + SEC Investigation
Test your AI trading models, portfolio optimization algorithms, and risk systems for adversarial attacks, bias, and regulatory compliance before they cost millions.
Real Losses from AI Failures
Lost by one bank due to biased AI lending model
Bloomberg, 2023
Average loss from one adversarial attack on trading AI
Financial Times, 2024
Average SEC investigation timeline for AI-related enforcement
SEC, 2024
🚨 95% of hedge funds using AI have never stress-tested their models for adversarial attacks.
What We Test For
AI risks specific to asset management and quantitative trading
Adversarial Attacks
Manipulated market data, adversarial inputs designed to trigger bad trades, data poisoning attacks on training sets.
Real Example: $2.3M loss from one manipulated data feed
Bias & Fairness
Demographic bias in lending models, systematic bias in asset allocation, unfair treatment across protected classes.
Regulatory Risk: CFPB, SEC, DOJ enforcement
Model Explainability
Can you explain why your model made a $10M trade? SEC, FINRA, and auditors will ask.
Requirement: SR 11-7 compliance, audit readiness
Robustness Testing
Flash crash scenarios, market volatility stress tests, black swan event simulations.
Goal: Ensure stability under extreme conditions
Model Drift Detection
Is your model's performance degrading? We detect drift before it causes losses.
Monitoring: Continuous validation required
Regulatory Compliance
SEC, FINRA, CFTC, FCA compliance. Documentation audit-ready for regulators.
Standards: SR 11-7, MiFID II, Dodd-Frank
Our AI Model Risk Assessment Process
Discovery & Scoping
Understand your AI systems, trading strategies, data sources, and risk appetite.
Adversarial Testing
50+ attack vectors. Manipulated inputs. Stress tests. Edge cases your unit tests never caught.
Compliance Audit
Validate against SR 11-7, SEC/FINRA requirements, and internal risk policies.
Remediation Roadmap
Detailed report with findings, risk ratings, and actionable fixes. Audit-ready documentation.
What You Receive
Comprehensive Risk Report (50-100 pages)
Executive summary, technical findings, risk ratings, compliance gaps, and remediation recommendations.
Adversarial Test Suite (300+ cases)
Reusable test cases for ongoing validation. Integrate into your CI/CD pipeline.
Regulatory Compliance Documentation
Audit-ready documentation package for SEC, FINRA, internal auditors, and board.
Executive Debrief & Roadmap
2-hour session with your leadership team. Clear action plan with timelines and priorities.
Continuous Monitoring Setup (Optional)
Automated regression testing, drift detection, and monthly safety audits.
Unlimited Email Support (90 days)
Questions during remediation? We're available to guide your team through implementation.
Investment & Timeline
Single Model Assessment
- One AI model (trading, risk, or portfolio)
- 3-4 weeks timeline
- 50-page risk report
- Compliance documentation
Full Portfolio Assessment
- All AI models across trading & risk
- 5-6 weeks timeline
- 100-page comprehensive report
- Quarterly monitoring setup
- Board presentation included
Continuous Monitoring
- Monthly adversarial testing
- Drift detection & alerts
- Quarterly compliance audits
- Priority support & consulting
Custom enterprise packages available for multi-fund organizations.
Contact us for enterprise pricing →Don't Wait for a $50M Loss to Take AI Risk Seriously
Book a 30-minute strategy call. We'll assess your AI risk posture and provide immediate recommendations.
Book Your Risk Assessment CallConfidential • No obligation • Fast response within 24 hours