Banks should clearly articulate the situations where human judgment may override the inputs or outputs of the rating process. They should identify overrides and separately track their performance.
5.3.2
For model-based ratings, banks should have guidelines and processes for monitoring cases where human judgment has overridden the model’s rating, variables were excluded or inputs altered. These guidelines should include identifying personnel that are responsible for approving the overrides.
5.3.3
For ratings based on expert judgment, banks should clearly articulate the situations where staff may override the outputs of the rating process, including how and to what extent such overrides can be used and by whom.
