Google, in partnership with the Alliance for Innovative Regulation (AIR), has released a new paper exploring the adaptation of model risk management (MRM) for financial institutions in the age of generative AI. The paper acknowledges the transformative potential of generative AI in financial services while emphasizing the need to address its novel complexities and risks. It highlights the importance of balancing the harnessing of its capabilities with the mitigation of its risks for successful adoption. The paper proposes that regulators provide enhanced clarity and acknowledge best practices in four key areas: model governance, model development, implementation and use, model validation and oversight, and shared responsibility in third-party risk management. A particularly interesting aspect of the paper is its call for enhanced regulatory clarity, especially regarding documentation requirements for generative AI model evaluation and grounding. This clarity could help financial institutions navigate the regulatory landscape with more confidence, fostering responsible innovation while mitigating potential risks. Furthermore, the emphasis on controls such as continuous monitoring, robust testing protocols, and human-in-the-loop oversight underscores the importance of incorporating safety and ethical considerations into generative AI applications. Overall, the paper provides a valuable framework for both financial institutions and regulators to navigate the complexities of generative AI in financial services. By prioritizing model governance, regulatory clarity, and responsible practices, the industry can harness the power of generative AI while mitigating its potential risks, paving the way for a more innovative and stable financial future.