Large Bank Examination Workshop February 2026

Documentation • An organization’s model documentation policy should include the requirement for an executive summary that is made available to senior management. • The questions that models answer are invariably quite narrow in strict logical terms, so a clear statement of model purposes helps senior decision makers understand the limitations of the model.

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Validation Issue - Documentation

• Technically, documentation is supposed to support the recreation of the model from scratch – usually not the case, especially for vendor models. • More importantly, documentation should be “desk level,” permitting someone relatively inexperienced with the model to generate accurate reports in the short term through a modeling cycle – screen shots, step-by-step “click-throughs”. • Protects against “key person risk”.

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