The basis for every model’s capabilities is its fundamental functionality. In order for you to be assured of a model’s fundamental capabilities, we offer a positive affirmation of those fundamental capabilities. MountainView’s model positive affirmation is based on two pillars: (a) the findings of a technical review of the model’s potential capabilities to model, and (b) validation of the model’s actual capabilities to perform its intended purpose.
Our model positive affirmation analysis is based on detailed reviews of category-level data definitions and data, set up attributes, inputs and assumptions and report accuracy. Using these reviews, we establish the theoretical capabilities of your model. We conduct our reviews by examining all components of your model that are, or could potentially be, associated with modeling and producing results.
MountainView conducts its analysis of model category-level data across multiple types of scenarios. This scenario analysis empirically proves out the actual capabilities of the model to accurately perform. We employ a proprietary diagnostic system and testing procedures to then verify your model's capabilities to perform as documented.
MountainView's model positive affirmation applies only to a model's fundamental functionality as it relates to documented capabilities. Because of the normally high degree of customization that characterizes institution-specific model implementations, it does not take the place of a periodic model risk assessment as may be mandated by business and regulatory needs.