There are no standard tests for financial models, but there are a series of test types that are used. Not all of these are appropriate for each model, and in order for the tester to understand which test types will be right for the model, the tester must first understand the model. The testing is never incidental; it doesn’t just happen because the model has been built. It is a carefully planned and organized activity that has a significant part to play in the delivery of the model. Therefore, it is a critical part of the model design.
Model testing is far from being an established business ...
