Ken,
Model validation is a kind of scientific study (we call it "risk management") of models. Can we say in this way ?
And it is usually done by other parties such that everything is independent from the party for development & implementation. However, can 2 independent parties think in the same way and get the same result ? For example, with the same goal, different banks can develop different models to achieve the same goal, does it contradict ?
From the doc, I find
"Developers should be able to demonstrate that such data and information are suitable for the model and that they are consistent with the theory behind the approach and with the chosen methodology."
It is a little bit open for discussion. I mean, there should be more than one exact way to achieve what is defined, right ?
My feeling is that the doc is still abstract, it is an overview instead of sth very strict defined. I know that space should be left, but I want to know the details (or an example) of how things (validation) are done. Say, what are the exact steps you will do to fullfill the regulation ? I know nothing, that's why I look for examples (or step by step)
Am I thinking on the right track ? Thanks ....