Institutions must assign a clearly defined objective to each model and include it in the model development documentation.
4.2.2
If stakeholders disagree on the objective of a model, the model must remain under development or be removed from production until the disagreement is resolved.
4.2.3
Institutions must have a defined strategy to meet the objectives of their models. Institutions must distinguish between short term tactical solutions from longer term solutions. Such strategies must be documented and approved by the stakeholders involved in model management, including Senior Management and the Board.
4.2.4
The modelling strategy must clearly articulate the potential contribution of third party consultants to the development, management and validation of models. The outsourcing strategy must be defined and justified, in particular regarding data, systems, calibration and methodology design. If a quantity of portion of modelling work is outsourced, institutions must implement mechanisms to retain controls control over the key elements of modelling.