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Model Validation is independent verification that a model performs as intended, is fit for its purpose, and is used within its limitations.
Model Validation, independent verification that a model performs as intended, is fit for its purpose, and is used within its limitations.
Model validation is the discipline of checking a model rather than taking it on trust, testing performance, probing assumptions, and confirming it is used only where appropriate. It comes from financial model risk management, most influentially the US Federal Reserve's SR 11-7 guidance, and is increasingly applied to AI and machine-learning models as a core line of defence.
Source: US Federal Reserve, SR 11-7 (Model Risk Management)
Model validation is the discipline of checking a model rather than taking it on trust, testing performance, probing assumptions, and confirming it is used only where appropriate. It comes from financial model risk management, most influentially the US Federal Reserve's SR 11-7 guidance, and is increasingly applied to AI and machine-learning models as a core line of defence.
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