New article published:
AI-Supported Model Validation in Risk Management
We are pleased to draw your attention to a recent technical publication from our firm:
The article, „Challenger vs. Champion: Wie KI-Modelle klassische Verfahren herausfordern“ examines the use of modern AI techniques, in particular XGBoost and SHAP, for the validation of scoring and risk models.
The article presents practical use cases, explains the underlying methodology, and discusses both the opportunities and the challenges of artificial intelligence in a regulated environment.
Publication: zeb.business-school – Journal of Applied Research in Financial Services, Edition II, Juli 2025
Dr. Andree Heseler
Managing Partner
About us
Industry Expertise and Interdisciplinary Competence
We operate as a specialized consulting firm for banks and other financial services providers, with a clear focus on risk management and regulatory requirements. We increasingly transfer our expertise in modeling, validation, and process optimization to adjacent sectors such as logistics, energy markets, insurance, and other industries that can benefit from data-driven and AI-supported approaches. This interdisciplinary perspective enables us to develop innovative solutions and create synergies across different industries.
Industries
- Banks
- Asset Managers
- Financial Services Providers
- Insurance Companies
- Logistics
- Corporate Sector
Consulting Focus Areas: Risk Management and Beyond
Our services range from conceptual design and implementation to the continuous optimization of risk management processes. A particular focus lies on the mathematical and stochastic development and validation of risk models: we design tailored modeling approaches, calibrate them using robust statistical methods, and support their ongoing review. In this way, we ensure that our solutions not only comply with regulatory requirements, but also meet the economic challenges of day-to-day banking and financial operations. We combine deep domain expertise with technical excellence to cover the entire life cycle of a risk model efficiently and to create sustainable added value for our clients.
Classical Methods and Modern AI Technologies Hand in Hand
We firmly believe that proven methods and modern technologies complement each other in the best possible way. That is why we deliberately leverage AI-based approaches, including as challenger models in validation, and advise you on the development and review of high-risk AI systems. These systems are subject to the strict requirements of the EU Artificial Intelligence Act, which entered into force in August 2024 and sets high standards for data quality, validation processes, and documentation. Together, we ensure that our solutions are not only technically sound, but also compliant with applicable regulations and legally and audit-proof. In this way, we support the forward-looking development of your risk management processes without compromising on proven methods.
In addition, we selectively use advanced AI-supported text and data analysis models where they offer clear added value in order to enhance our consulting services. Such use always takes place only with your consent and under strict consideration of security aspects and applicable data protection requirements. These technologies enable us to make operational tasks more efficient and to support data-driven decision-making. By using AI, we can deliver projects with greater flexibility and agility, leading to better alignment with your individual needs.
The use of AI also enables us to pursue more ambitious project objectives together. AI makes it possible to perform complex data analyses, generate more precise forecasts, and optimize decision-making processes, resulting in more efficient and more successful project execution.
We integrate data-driven technologies into your processes to unlock new potential in modeling, automation, and decision-making through the use of artificial intelligence.
Selected Links:
Our Expert-Hub
We combine the strength of a broad network with the agility of a lean organization to support your projects with outstanding expertise, innovative solutions, and a reliable partner ecosystem.
Our Expert-Hub brings together the capabilities of our interdisciplinary core team, consisting of mathematicians, physicists, economists, and computer scientists, with the resources of an extensive partner network. This structure enables us to integrate highly specialized expertise whenever required while preserving the advantages of a well-coordinated and versatile team. In this way, we create tailored solutions for our clients and ensure comprehensive support throughout all phases of a project.
Professionals
- Mathematicians
- Physicists
- Economists
- Computer Scientists
As a client, you benefit from
- Breadth of Expertise: Our network includes risk managers, financial quants, business analysts, data scientists, software and IT specialists, and other experts. This ensures that every challenge is addressed with the right expertise.
- Flexible Engagement: We integrate partner firms as well as participating partners directly into our structure as stakeholders. At the same time, we maintain a pool of employed staff. This ensures that these experts remain available to you as needed.
- Seamless Collaboratio: Thanks to our established cooperation agreements, your administrative effort is reduced. You benefit from a pool of reliable, well-coordinated professionals from a single source, without having to deal with fragmented contractual arrangements.
Our Approach: Business and Technical Cycle
Our consulting approach is broad-based and structured into two closely interlinked cycles: the business cycle and the technical cycle. Both interact seamlessly and ensure a consistent and efficient implementation process.
This clear separation, combined with the parallel integration of business and technical tasks, enables a transparent, traceable, and highly efficient project delivery model, producing sustainable results with long-term value.
Business Cycle
Technical Cycle
Contact
Have we sparked your interest? Please feel free to get in touch:
Tel. +49 6196 999 4585
E-Mail: info@mex-consulting.de