Implementation Validation

From Open Risk Manual


Implementation Validation (also Implementation Testing, Technical Validation) denotes the review and validation of the correctness of the implementation of the model in the actual computer code against the documented model methodology. The objective is to ensure the integrity and robustness of IT systems and in particular that, in terms of IT, the implementation of the models is successful and error-free

ECB TRIM Requirements

In the context of Targeted Review of Internal Models the following requirements apply[1]

Internal policies should consider all potential events that should trigger a testing procedure and their impact on the tests to be conducted. The trigger events that should be considered include: software releases or material IT-related changes, regulatory changes, model methodology changes and the extension of the range of application of a rating system

IT implementation tests to be considered include the following:

  • Unit/component/module tests;
  • Integration tests (of units and between systems);
  • System tests (this includes functionality, performance – in normal and stress scenarios – and security and portability tests);
  • User acceptance testing (functional testing);
  • Regression testing.

The unit(s) responsible for performing the implementation tests should be clearly identified and the results of the tests should be documented


  1. ECB guide to internal models − Credit risk, Sep 2018

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