Governance and model risk

Model validation

Evaluating whether a model performs as expected, including its reliability and its limitations.

Model validation is the set of activities that evaluate whether a model performs as expected, including an assessment of its reliability and its limitations. Under the US agencies' revised model risk guidance, the rigour of validation follows the model's approach, use and materiality, generally takes place before first use, and covers elements such as conceptual soundness and outcomes analysis. For an agent, validation extends to the whole system around the model: its tools, its limits and the checks that stop wrong actions.

Agent Minute explains this term on 26 October 2026.

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