Annual Re-Verification Pack

Product Guide • Beginner • 2 min read

Audience: Lenders • Family Offices • Advisory Firms
Last Reviewed: July 2026
Updated: Version 1.0

Executive Summary

The Annual Re-Verification Pack is the calendar product in the Oxxon Advisors suite — an annual structural re-verification of a model under management, run against existing annual credit and asset review budgets. Each year, the current version of the model runs the structural pipeline and is diffed against the custody baseline sealed at close, or against the prior year's re-verification, and classified as structurally stable, drifted and remediated, drifted and degraded, or restructured. It answers the credit officer's actual question, is the model we rely on still the model we verified, and if not, what changed.

Key Takeaways

✓ The Annual Re-Verification Pack re-runs the structural pipeline on a model annually and compares it against its custody baseline or the prior year's re-verification.
✓ Drift is classified into one of four defined states, structurally stable, drifted and remediated, drifted and degraded, or restructured.
✓ It rides existing annual credit and asset review budgets rather than creating a new spending category.
✓ It is a workflow calendar reminder for the next annual cycle, not a continuous monitoring or alerting service.
✓ A structurally stable result is treated as a certificate worth having in its own right, not as a disappointing non-event.

Purpose¶

The Annual Re-Verification Pack is the calendar product in the Oxxon Advisors suite: an annual structural re-verification of a model under management, sold against existing annual credit and asset review budgets. Each year, the current model runs the same structural pipeline used throughout the deal and is compared against its custody baseline or the prior year's re-verification, answering whether the model relied on is still the model that was verified, and if not, what changed.

Who It Is For¶

The customer base is lenders' portfolio and credit teams, and funds or family offices with assets under management that continue to rely on a model well beyond the transaction that first produced it. The buyer is the owner of the annual review budget, and the recurrence is annual by construction, tied to the review calendar itself.

Problems Solved¶

Lenders and asset managers typically re-rely on a model each year without re-verifying that it still matches the version originally verified at close.
A model can drift silently between the version verified at close and the version currently being used to support ongoing decisions.
Credit and asset teams need to know not just that a model changed, but whether the change was a remediation, a degradation, or a full restructuring.
Annual review calendars need a structural check that fits inside the existing review cycle, rather than a separate process running on its own schedule.

Workflow¶

Each year, the current version of the model runs the same structural pipeline used at the original review, and the resulting findings are compared against the custody baseline retrieved from the Close Baseline Pack, or against the prior year's Annual Re-Verification Pack deposit where one exists. The comparison uses the same underlying comparator used in the Resubmission Diff Pack, and the result is classified into one of four drift states: structurally stable, drifted and remediated, drifted and degraded, or restructured. A calendar field on the engagement schedules the following year's cycle as a workflow reminder.

Outputs¶

The deliverable is the ARV report: an annual verification panel stating the drift classification, a one-line verdict, coverage, and stamps, followed by a drift register presenting findings fates against the baseline in the same style as the Resubmission Diff Pack, a current findings summary, and a refreshed certificate page. The verification registry entry is updated with the new status and year, and the ARV deposit itself becomes the new reference point for the following year's cycle.

Continue Reading¶

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Frequently Asked Questions

What is the Annual Re-Verification Pack?

An annual structural re-verification of a model under management, comparing the current version against its custody baseline or the prior year's re-verification and classifying any drift.

Who buys the Annual Re-Verification Pack?

Lenders' portfolio and credit teams, and funds or family offices with assets under management that rely on a model year after year.

What problem does it solve?

Lenders and asset managers typically re-rely on a model each year without re-verifying that it still matches the version originally verified. The Annual Re-Verification Pack prices and closes that gap.

What are the possible drift classifications?

Structurally stable, drifted and remediated, drifted and degraded, or restructured, each defined by testable conditions over the comparison between the current and reference model versions.

What does the Annual Re-Verification Pack compare the current model against?

The custody baseline sealed at financial close under the Close Baseline Pack, or, in later years, the prior year's Annual Re-Verification Pack deposit, forming a chain of verified reference points.

Is the Annual Re-Verification Pack a continuous monitoring service?

No. It is an annual, calendar-driven engagement. It does not provide continuous monitoring, alerting, or dashboards between annual cycles.

What happens if the model has not changed at all?

It is classified as structurally stable and a refreshed certificate is issued, which is treated as a genuine assurance outcome worth having, not as a lesser result than finding change.

What Is a Financial Model Audit?

A financial model audit is an independent, structured examination of an Excel based financial model to confirm that its mechanics, logic, and outputs are reliable enough to support a decision. It is not a check of whether the assumptions are optimistic or conservative. It is a check of whether the model actually calculates what its author believes it calculates. Every year, lenders extend debt, investment committees approve capital, and boards sign off on transactions using numbers that came out of a spreadsheet nobody outside the immediate deal team has independently verified. A financial model audit exists to close that gap before it becomes expensive.

What Is Model Risk?

Model risk is the risk that a decision is wrong not because the underlying business or investment case was flawed, but because the model used to evaluate it was. It is a distinct category of risk from market risk, credit risk, or operational risk, and it applies to any organisation that relies on a financial model, spreadsheet or otherwise, to support a material decision. Most published model risk content addresses statistical and regulatory capital models used inside banks. This page defines model risk specifically as it applies to Excel based financial models, the kind used every day for investment decisions, lending, and transaction evaluation, which is a related but distinct problem from the quantitative model risk literature most search results return.

Manual vs Automated Financial Model Audit

Financial model audit can be performed manually, by a human reviewer applying professional judgement and a defined process, or through automated, deterministic software that systematically tests every formula against a fixed rule set. This page compares the two approaches on coverage, consistency, turnaround, and appropriate use case, consistent with the broader distinction described on the AI Financial Model Audit pillar page.