What Is Model Validation?
Model Validation is independent verification that a model performs as intended, is fit for its purpose, and is used within its limitations.
Model Validation — independent verification that a model performs as intended, is fit for its purpose, and is used within its limitations.
Model validation is the discipline of checking a model rather than taking it on trust — testing performance, probing assumptions, and confirming it is used only where appropriate. It comes from financial model risk management, most influentially the US Federal Reserve's SR 11-7 guidance, and is increasingly applied to AI and machine-learning models as a core line of defence.
Source: US Federal Reserve, SR 11-7 (Model Risk Management)
Plain-language explanation
Model validation is the discipline of checking a model rather than taking it on trust — testing performance, probing assumptions, and confirming it is used only where appropriate. It comes from financial model risk management, most influentially the US Federal Reserve's SR 11-7 guidance, and is increasingly applied to AI and machine-learning models as a core line of defence.
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