What is Model Inventory?

Definition

In risk management, a Model Inventory is a repository that provides an overview of all the models that are available at a given time within an organization. It typically captures various attributes such as model stakeholders and their responsibilities, model classification (i.e. model tiering), and model status (e.g. development, validation, or production stage).

The model inventory is a place to store findings related to the model’s known assumptions and limitations. This repository may collect all documents related to the model; for instance, model methodology documentation and validation reports, together with some evidence of key events that have happened on the model (e.g. bias treatment approvals). More generally,  maintaining an inventory of models turns out to be key to support the overall model governance process, with a major objective to identify and manage model risk.

Usage

A model inventory is a tool that supports the overall Model Governance of an organization. The key objective of a model inventory is identifying and managing Model Risk.