Performance window

A performance window is the period after a credit decision over which a loan’s outcome, such as default, is observed. It is also called an outcome window. Its length determines how long a credit test or model validation must run before the relevant outcomes can be assessed.

Example

Suppose a lender approves a loan on 1 January and sets a 12-month performance window. The outcome is observed through 31 December, so a test using that outcome must allow time for the window to elapse for the loans being assessed.

A performance window is the period after a credit decision in which an outcome such as default is observed; on the champion-challenger testing page, a free tool uses it to size a test.