Institutions must manage each model according to a cycle that includes, at a minimum, the following steps.
(i)
Development,
(ii)
Pre-implementation validation,
(iii)
Implementation,
(iv)
Usage and monitoring,
(v)
Independent validation, and
(vi)
Recalibration, redevelopment or retirement, if deemed necessary.
4.3.2
The duration and frequency of each step must be specified in advance for each model and documented accordingly.
4.3.3
Upon independent validation and the response from the development team, the following decisions must be considered by the Model Oversight Committee, which must all be thoroughly justified:
(i)
Leave the model unchanged,
(ii)
Use a temporary adjustment while establishing a remediation plan,