Initial Validation
From Open Risk Manual
Definition
Initial Model Validation is the first iteration of the Model Validation process for a particular model or model group that has not been previously validated, either because it is newly developed or because of updates in the Model Governance framework.
Issues and Challenges
- An initial validation is potentially more difficult than subsequent re-validation.
- A successful initial validation can create a form of Anchoring Bias in that subsequent discussions may be pegged on the model outcomes as opposed to challenging the model
