Role-Specific Text Summarization Exercises

Objective:

Learn to craft effective prompts for summarizing complex regulatory guidance related to model risk management.

Background:

Model Risk Managers must frequently digest and communicate key points from lengthy regulatory guidance documents to various stakeholders within the organization.

Exercise:

1. Scenario:

You need to summarize a new regulatory guidance document on AI/ML model governance for your institution's Model Risk Committee.

2. Basic Prompt Example:

Summarize this regulatory guidance on AI models.

3. Prompt Improvement Activity:

• Identify the limitations of the basic prompt (lack of specificity, context, and structure)
• Add details about your target audience and their information needs
• Specify the level of detail and format required
• Request focus on specific aspects most relevant to your institution

4. Advanced Prompt Template:

I need to summarize a new regulatory guidance document on AI/ML model governance for our Model Risk Committee. The guidance is [length] pages and covers [main topics]. Please help me create a comprehensive yet concise executive summary.

Target audience:
- Model Risk Committee members (senior risk officers, business leaders, and technical experts)
- They need to understand key requirements, implementation implications, and timeline expectations
- They have varying levels of technical knowledge about AI/ML models
- They are primarily concerned with governance, compliance, and resource implications

Institutional context:
- [Size/type] financial institution with [retail/commercial/investment] banking operations
- Currently using [number/types] of AI/ML models in [applications]
- Existing model governance framework based on SR 11-7 and OCC 2011-12
- Current challenges include [specific challenges]

Please summarize the guidance with focus on:
1. Key requirements and expectations for AI/ML model governance
2. New or enhanced controls required beyond traditional models
3. Documentation and evidence expectations
4. Validation and testing requirements
5. Ongoing monitoring and performance tracking expectations
6. Implementation timeline and any phased approach
7. Differences from existing guidance (SR 11-7, etc.)
8. Areas of flexibility or supervisory discretion

Format requirements:
- Executive summary (approximately 1 page) highlighting critical points
- Detailed section-by-section summary (3-4 pages total)
- Bullet points for key requirements and action items
- Table or matrix of new requirements vs. existing practices
- Implementation timeline visualization
- Glossary of key technical terms for non-technical audience members

Please ensure the summary:
- Maintains accuracy of the original guidance
- Distinguishes between requirements ("must/shall") and recommendations ("should/may")
- Highlights any ambiguities or areas requiring interpretation
- Identifies potential implementation challenges
- Preserves important nuances and context
- Uses clear, precise language accessible to non-technical readers

IMPORTANT: Focus on factual information from the guidance document. Clearly distinguish between explicit requirements and your interpretations or implications.

5. Evaluation Criteria:

• Does the prompt clearly specify the target audience and their needs?
• Does it provide sufficient institutional context?
• Does it focus on the most relevant aspects of the guidance?
• Does it request an appropriate format and level of detail?
• Does it include guidance on maintaining accuracy and distinguishing requirements from recommendations?

6. Practice Activity:

Create your own advanced prompt for summarizing:

1. A technical paper on model explainability techniques
2. A regulatory enforcement action related to model risk management
3. A consultant's report on model risk management best practices

Objective:

Learn to craft effective prompts for summarizing complex risk research and reports for executive audiences.

Background:

Risk Officers must frequently distill lengthy research papers and industry reports into concise, actionable summaries for senior management and board committees.

Exercise:

1. Scenario:

You need to summarize a detailed industry report on emerging risks for your institution's Risk Committee.

2. Basic Prompt Example:

Summarize this risk report for executives.

3. Prompt Improvement Activity:

• Identify the limitations of the basic prompt (lack of specificity, context, and structure)
• Add details about your target audience and their information needs
• Specify the level of detail and format required
• Request focus on specific risk areas most relevant to your institution

4. Advanced Prompt Template:

I need to summarize a detailed industry report on emerging risks for our Risk Committee. The report is [length] pages and covers [main topics]. Please help me create an executive-friendly summary that highlights the most relevant insights for our institution.

Target audience:
- Risk Committee members (senior executives and board members)
- They need actionable insights rather than technical details
- They are focused on strategic implications and oversight responsibilities
- They have limited time and need concise, high-impact information

Institutional context:
- [Size/type] financial institution with [retail/commercial/investment] banking focus
- Key risk exposures include [specific risk areas]
- Current strategic initiatives include [initiatives]
- Existing risk concerns include [specific concerns]

Please summarize the report with focus on:
1. Key emerging risks most relevant to our institution's profile
2. Potential impact magnitude and likelihood assessments
3. Industry trends and peer bank responses
4. Regulatory expectations and scrutiny areas
5. Recommended risk management approaches
6. Early warning indicators to monitor
7. Strategic implications for our business model
8. Potential opportunities arising from risk landscape changes

Format requirements:
- One-page executive summary highlighting critical insights
- Visual risk heat map or matrix showing relative priorities
- Bullet points for key findings and implications
- Table comparing our potential exposure to industry benchmarks
- Timeline of expected risk evolution
- Specific, actionable recommendations for our context

Please ensure the summary:
- Translates technical concepts into business implications
- Prioritizes risks based on relevance to our institution
- Distinguishes between near-term and longer-term concerns
- Balances highlighting risks with practical next steps
- Provides context for why these risks matter to our business
- Uses clear, jargon-free language appropriate for executives

IMPORTANT: Focus on insights most relevant to our institution's profile and strategic direction. Emphasize actionable information rather than theoretical concepts.

5. Evaluation Criteria:

• Does the prompt clearly specify the target audience and their needs?
• Does it provide sufficient institutional context?
• Does it focus on the most relevant aspects of the report?
• Does it request an appropriate format and level of detail?
• Does it include guidance on making the summary actionable and business-focused?

6. Practice Activity:

Create your own advanced prompt for summarizing:

1. A research paper on climate-related financial risks
2. An industry survey on operational resilience practices
3. A consultant's report on digital transformation risks