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Governance & Compliance
Module · Models decay the day they ship
The Model Risk Management Check
A model that passed its demo can quietly rot in production as the world it learned from moves on. The failure is rarely dramatic: accuracy slips a few points a quarter until the recommendations are wrong more often than right, and nobody notices because nobody is watching. This module checks the five disciplines that keep a live model honest: validation before launch, drift monitoring, performance thresholds with alerts, retraining, and knowing which models you even run.
What the five levels look like
Every dimension in this assessment is scored 1 to 5. This is what the levels mean, dimension by dimension. The graded report diagnoses where your own answers land and what to do about it.
Validated before launch
- 1No validation
- 2Builder self-checks
- 3Informal review
- 4Independent validation
- 5Validated against holdout
At the low end: Shipping a model nobody validated means production is your test environment and customers are your test cases. Add a validation gate on held-out data before the next model goes live. What good looks like: Independent validation on a clean holdout is the standard most teams skip. Keep the validation set genuinely separate; the moment it leaks into training, the check stops meaning anything.
Drift is watched
- 1No monitoring
- 2Checked yearly
- 3Occasional spot checks
- 4Automated monitoring
- 5Monitored with baselines
At the low end: An unmonitored model in production is decaying at a rate you have chosen not to measure. Start tracking its inputs and outputs against launch-day baselines so decline becomes visible. What good looks like: Automated drift monitoring against baselines is what lets you trust a model between retrains. Review the baselines periodically; a drift alarm calibrated to last year's world will cry wolf or stay silent.
Thresholds trigger alerts
- 1No thresholds
- 2Numbers on a dashboard
- 3Thresholds, no alerts
- 4Alerts, unclear owner
- 5Alerts reach an owner
At the low end: Without a defined threshold, there is no moment at which anyone is obliged to act, so nobody does. Set a minimum performance line per model and decide what happens when it breaks. What good looks like: Thresholds that alert a clear owner turn model decline into a routine ticket instead of a crisis. Rehearse the response occasionally; an alert with no agreed next step just adds noise.
Retraining is deliberate
- 1Never retrained
- 2Only after failure
- 3Ad hoc retrains
- 4Scheduled retraining
- 5Scheduled and revalidated
At the low end: A model that is never refreshed drifts until it is actively misleading. Decide a retraining trigger, whether a calendar date or a drift threshold, before the decline forces your hand. What good looks like: Scheduled retraining with revalidation keeps the model current without smuggling in untested changes. Treat every retrain as a new deployment; skipping validation because 'it is just a refresh' is how regressions ship.
You know your models
- 1No inventory
- 2In people's heads
- 3Partial, outdated
- 4Documented inventory
- 5Living, owned inventory
At the low end: Without an inventory, every model on this checklist is one you cannot confirm you are managing. Start the list this week: what each model decides, who owns it, where it runs. What good looks like: A living, owned inventory is the foundation every other control here sits on. Tie it to deployment so a new model cannot go live without an entry; unlisted models are unmonitored models.