Summarize a model validation for model risk management
A validation report summary covering conceptual soundness, data, performance, limitations, and findings with severity ratings.
The prompt
Help me write a model validation summary for our model risk management function.
Model: [name, purpose - e.g. "PD scorecard for small business loans", "CECL loss model", "fraud detection", "AML transaction monitoring"]
Model tier or risk rating: [high / medium / low]
Methodology: [technique, key variables, vendor or in-house]
Development data: [period, sample, exclusions]
Validation testing performed and results: [PASTE - e.g. discrimination (AUC, Gini, KS), calibration, stability (PSI), back-testing, sensitivity, benchmarking]
Use in decisions: [where model outputs are used and any overrides]
Issues found: [LIST]
Write the summary in this structure (aligned with common model risk guidance such as SR 11-7 or equivalent):
1. Overall conclusion: fit for use / fit for use with conditions / not fit for use, with the reason in 2-3 sentences.
2. Conceptual soundness: whether the approach suits the purpose and the key assumptions.
3. Data quality and relevance, including whether the development period reflects current conditions.
4. Outcomes analysis: performance results against thresholds, in a table.
5. Limitations and compensating controls (overlays, overrides, monitoring).
6. Findings table: ID, description, severity (high/medium/low), required action, owner, due date.
7. Ongoing monitoring recommendations with metrics and triggers.
8. For credit decision models: whether fair lending or disparate impact testing was done, and gaps.
Use only the results I provide; mark missing tests [NOT PERFORMED] or [CONFIRM]. Do not overstate performance.
Highlighted [brackets] are blanks to replace with your own details.
Fill in the blanks and use this promptMore Data & Analysis prompts
What to fill in
- high / medium / low
- technique, key variables, vendor or in-house
- period, sample, exclusions
- where model outputs are used and any overrides
- LIST
- NOT PERFORMED
- CONFIRM
How this prompt is built
This prompt follows the Few-Shot structure (Few-shot prompting). A few-shot prompt includes one or more worked examples of the input and the output you want, so the model can copy the pattern instead of guessing it.
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