A large Indian bank had deployed multiple Probability of Default and Loss Given Default models across retail products, including credit cards, personal loans, vehicle loans, and mortgages. As regulatory scrutiny increased and the institution prepared for Expected Credit Loss–based frameworks, leadership needed assurance that these models were conceptually sound, well governed, and defensible for long-term production use.
The challenge was not model performance alone, but whether existing models could withstand regulatory examination and support ECL decisions with confidence. Risk teams needed clarity on conceptual assumptions, governance gaps, and model limitations before audit or supervisory review, without turning validation into a theoretical exercise.
Dhurin conducted an independent qualitative validation focused on decision defensibility rather than checklist compliance. The review examined model design choices, data suitability, default definitions, variable logic, macroeconomic overlays, documentation quality, and alignment with business and risk intent. Findings were translated into clear, evidence-backed actions with traceability, enabling model owners to address gaps pragmatically and consistently across portfolios.
The engagement strengthened regulatory confidence in the bank’s ECL readiness and clarified model limitations and assumptions. Risk teams gained audit-ready documentation, improved transparency into model behavior, and a repeatable validation approach that could scale across products. Compliance shifted from a reactive requirement to a governed discipline.
