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Model validation

The independent review that checks a model is conceptually sound, correctly built and fit for its intended use.

Model validation is a separate line of defence from the team that builds the model. Validators test the theory, the data, the implementation and the outcomes, and they challenge the assumptions and the limits.

It usually includes benchmarking against alternatives, backtesting against real outcomes, and a clear statement of where the model may and may not be used.

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