Which is the discipline of risk management related to the risk of algorithms, machine learning,...

Model risk management is the discipline focused on managing risks arising from the use of models, including those based on algorithms, machine learning, and AI in transaction monitoring and screening software.

Vendor risk management (A) covers third-party risks but not specifically model risks. IT security risk management (B) focuses on cybersecurity. Operational risk management (C) covers process and people risks but model risk management specifically addresses model validity, reliability, and performance.

DFSA and global AML frameworks highlight the need for strong model risk governance to ensure accurate detection and compliance.