A previously approved model may need reassessment at some point. Which answer best matches lifecycle governance practice for when that should happen?
Select an answer to reveal the explanation.
Short Explanation
Reassess when something real has changed—new data, a new purpose, a new version, or new risk—not just when the calendar says so. You need to keep governance tied to material change, not a fixed date.
Full Explanation
Material changes to data, purpose, version, or risk conditions are the events that should trigger reassessment, because any of them can invalidate the original approval's assumptions. Waiting only until the end of the model's originally planned lifespan is incorrect because it ignores changes that could matter long before that date arrives. Reassessing only if accuracy drops below its original benchmark is incorrect because accuracy is only one signal; purpose or risk can shift materially while accuracy stays stable. Treating approval as permanent and saying reassessment is never needed is incorrect because it removes governance oversight for the rest of the model's life. For the exam, tie reassessment triggers to material change in data, purpose, version, or risk, not to a single metric or a fixed date.