As part of the definition of model strategy and objectives, institutions must articulate and document upfront the expected usage of each model. Model usage must cover, at a minimum, the following components:
(i)
The users identified either as individuals or teams,
(ii)
The expected frequency of model utilisation,
(iii)
The specific source and nature of the inputs in the production environment,
(iv)
The destination of the outputs in terms of IT system and operational processes,
(v)
The interpretation of the outputs, that is a clear guidance on how the outputs should be used, their meaning and the decisions that they can support,
(vi)
The limits of the outputs, associated uncertainty and the decisions that can be supported by the model versus those that should be supported, and
(vii)
The governance of output overrides.
8.2.2
Institutions must produce indicators to actively monitor the realisation of the components in 8.2.1 and compare them against initial expectations. These must be documented and reported as part of the monitoring and validation steps of the model life-cycle.
8.2.3
Any deviation between the real usage of a model and the expected usage of a model must be documented in the monitoring and validation phases and remedied promptly, by reverting to the intended usage of the model.