As per the Federal Reserve's best practice guidelines, the Chief Risk Officer (CRO) is evaluating the bank's model validation process for potential improvements. Which of the following suggestions should the CRO propose to effectively address the identified shortcomings in the current model validation process?

Exam-Like

Require internal auditors that are responsible for assessing the bank's model risk management framework to also validate and backtest the models.

7.1%

Begin monitoring the performance of each model only after the backtest of the model hasbeen successfully completed.

2.4%

Ensure that any third-party vendor models used by the bank are implemented under the assumptions that were initially provided by the vendor.

7.1%

Establish a continuous process of model risk management and validation rather than a process that conducts reviews at specific points in time.

83.3%

Financial Risk Manager Part 2