Reference
Model Risk Management (MRM) Validator glossary
Terms used in Model Risk Management (MRM) Validator and its documentation.
Applies to Model Risk Management (MRM) Validator as it works today. Moraph updates the platform continuously, and this page is reviewed when it changes.
Terms used in Model Risk Management (MRM) Validator and its documentation.
| Term | Meaning |
|---|---|
| SR 11-7 | US supervisory guidance on model risk management that sets expectations for model development, validation and governance. |
| Model inventory | The list of every model and model-like tool, with owners, uses, tiers and validation status. |
| Risk tier | A model's risk level under your policy, which decides how often and how deeply it is validated. |
| Effective challenge | Critical review of a model by people independent of its development who are able to influence change. |
| Data snapshot | The fixed set of data used in a test run, recorded so the run can be repeated. |
| Population stability index | A measure of how much the distribution of a model's inputs or scores has shifted from its baseline. |
| Drift | A change over time in a model's inputs, scores or performance compared with its baseline. |
| Conditions on use | Restrictions attached to a validation conclusion that the model owner must follow. |
| Back-testing | Comparing a model's past predictions with actual outcomes. |
| Proxy method | A method your fair lending program uses to estimate group membership where it is not collected. |
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