Riskweise builds Model Risk Management Frameworks (MRMFs) for GCC banks aligned with CBUAE Model Management Standards, SR 11-7, ECB TRIM and Basel Committee principles on model risk — covering enterprise model inventory, governance structures, documentation standards, limit frameworks, and full data lineage.
CBUAE's MMS represented a major shift in supervisory expectations on model risk. Most banks now need a comprehensive enterprise framework, not just IFRS 9 ECL governance. Riskweise covers all material model categories: credit, market, ALM, IRRBB, FTP, RAROC, compliance and pricing models.
Enterprise-wide identification and tiering of all quantitative tools — covering credit, market, ALM, IRRBB, FTP, RAROC, compliance and pricing models. Each model classified by materiality, complexity, and supervisory relevance with explicit tier-based governance treatment.
MRMF covering governance, ownership, three-lines-of-defence, approval workflows, change control, and decommissioning protocols. Designed for audit-readiness and supervisory scrutiny under CBUAE MMS, SAMA, CBB, QCB, CBK and CBO supervisory regimes.
Standard templates for model development, validation and monitoring. Ensures transparency, reproducibility and audit evidence across all models — reducing the documentation burden for model owners while raising baseline quality.
Quantitative thresholds (stability, discrimination, accuracy, backtesting) and qualitative thresholds (usage, process adherence, override limits). Each model has an explicit operating envelope with breach triggers escalating to model risk committee.
Model Oversight Committee, Board committee alignment, escalation paths. Designed for audit-readiness and regulatory scrutiny, with explicit role separation between model development, validation, and oversight functions.
Data taxonomy, lineage mapping (source to transformation to model input to output), quality rules, and traceability for regulator reviews. Lineage documentation is what regulators look at first when a model output is queried.
CBUAE MMS is a supervisory framework for model risk management at UAE-licensed banks, setting explicit expectations across model inventory, governance, documentation, validation, monitoring, and data lineage. Most material model categories are in scope — IFRS 9 ECL, ICAAP, market risk, ALM, IRRBB, RAROC, FTP, pricing, and compliance models. MMS aligns broadly with SR 11-7 and Basel Committee principles, with specific UAE supervisory nuances.
Any quantitative tool used for measurement, valuation, decisioning, or capital / provision computation. This typically includes: IFRS 9 ECL models; ICAAP capital adequacy models; stress testing models; market risk VaR; IRRBB; ALM and FTP; RAROC and pricing models; AML and fraud models; recovery rate models; concentration risk models. Tier-based classification distinguishes material from non-material — but everything goes in the inventory first.
IFRS 9 governance addresses one specific model family. MRMF is enterprise-wide — covering every material quantitative tool with consistent governance, documentation, validation, and monitoring standards. A bank can have excellent IFRS 9 ECL governance and still fail MMS thematic review because other model categories (market risk, IRRBB, pricing) lack equivalent rigour.
Yes. Data lineage — tracing every model input from source system through transformation to model output — is one of the elements regulators scrutinise most closely under MMS. Riskweise builds lineage maps using the institution's actual data architecture and produces a standard documentation pack that the IT, risk, and finance teams can maintain together.
Initial framework, policy and inventory: 8-12 weeks. Full documentation rollout across all material models: 12-20 weeks depending on inventory size. Limit framework calibration and governance committee setup: 6-8 weeks. Most banks run a 24-30 week programme to reach a fully operational MRMF, with parallel rollout streams for different model categories.
We can — but the framework is designed for the bank's own team to run. The MRMF policy, templates, governance structures, and limit framework are all delivered to be operated internally. Ongoing support is typically advisory: quarterly governance committee attendance, annual framework refresh, and triggered review on material changes.
We respond within one business day. No agency-style discovery process — straight to scope, fit, and what you actually need.
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