The analyses and tests performed during the validation of a model must be rigorously documented in a validation report. Validation reports must be practical, action orientated, focused on findings and avoid unnecessary theoretical digressions. A validation report should include, at a minimum, the following components:
(i)
The model reference number, nomenclature, materiality and classification,
(ii)
The implementation date, the monitoring dates and the last validation date, if any,
(iii)
A clear list of findings with their associated severity,
(iv)
Suggestions for remediation, when appropriate,
(v)
The value of each performance indicator with its associated limit,
(vi)
The results of the qualitative review as explained above,
(vii)
The results of the quantitative review as explained above,
(viii)
The model risk rating, and
(ix)
A conclusion regarding the overall performance.
10.6.2
The model validation report must refer to the steps of the model life-cycle. Its conclusion should be one of the following possible outcomes, as mentioned in the model governance section:
(i)
Leave the model unchanged,
(ii)
Use a temporary adjustment while establishing a remediation plan,