services > model validation > who > what > when > where > why > how >

 

on model validation: what?

what is model validation?

 

validation defined (U.S. Naval Air Warfare Center Training Systems Division)

• validation of a simulation model refers to the process of determining how accurately the model represents the real-world item for the intended uses of the model.
• this is not the same as verification, which is an interim step for determining that a model properly represents the developer's conceptual description and specifications.
• • principles of validation (U.K. Financial Services Authority )
  – validation is fundamentally about assessing the predictive ability of an institution’s risk estimates
  – the institution has primary responsibility for validation
  – validation is an iterative process
  – there is no single validation method
  – validation should encompass both quantitative and qualitative elements

principles of validation (U.K. Financial Services Authority )

• validation is fundamentally about assessing the predictive ability of an institution’s risk estimates
• the institution has primary responsibility for validation
• validation is an iterative process
• there is no single validation method
• validation should encompass both quantitative and qualitative elements

sample of ALMnetwork model-specific experience

• ALMeter (formerly Bankmaster)
• Bancware
• BASIS (Darling)
• Farin
  – Foresight
  – SAM
• FinPro
• FTI (now OSI)
• Fiserv (formerly IPS-Sendero)
  – AL Manager
  – Vantage
• ProfitStars (Jack Henry)
• QRM
• Stockton Financial
• Thomas Ho Company Decisions
• ZMFS & online ALM.com