Model Decommissioning
From Open Risk Manual
Definition
Model Decommissioning is the decision to suspend the operation of deployed Risk Model. The decision might be triggered by external events or due to deteriorating model performance
Depending on the context (e.g. application regulation) any significant change may be classified as a new model and triggers a full validation / implementation cycle.
Example
When a monitoring report or other insight suggests the scorecard in production is no longer fit-for-purpose then depending on the context the scorecard must be adjusted or replaced. Model adjustment can be
- minimal (e.g. re-estimation using an adjusted dataset)
- substantial (e.g. introduction of a new characteristic, changing segmentation)
- significant intervention (e.g. changing the model family)
