Large Bank Examination Workshop February 2026

Code and Mathematics • A number of procedures exist for testing code. Most models, such as those that operate in spreadsheets, have relatively simple code and equations, which can be cheaply tested by the independent construction of a similar model. • If the results of the two models agree precisely, it is usually highly unlikely that the two independently constructed models would contain precisely identical errors.

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Code and Mathematics • For more complex models, independent construction of a similar model may be too costly. These situations require alternative practices. Some practices will: 1. Assign a modeling professional with the task of line-by-line proofreading of the code. 2. Compare model results to the results from a second, well validated “benchmark”

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