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Model risk · CBUAE
CBUAE MMS — what local banks must build
A practitioner reading of the Central Bank of the UAE's Model Management Standards — what an MRMF must actually include, where MMS diverges from SR 11-7, and the pitfalls that surface in supervision.
- 24 pages · practitioner depth
- 08 chapters from scope to roadmap
- 05 implementation pitfalls, named
- MMS mapped against SR 11-7
About this paper
The Central Bank of the UAE's Model Management Standards (MMS) and Model Management Guidelines (MMG) set out specific expectations for model risk management at UAE-regulated banks and finance companies. This paper walks through what an MRMF aligned to MMS actually has to include — inventory and tiering, validation, governance committees, documentation framework, and data lineage. It contrasts MMS with the US Fed's SR 11-7 (the global reference) and highlights five common implementation pitfalls observed in mid-size GCC institutions.
What's inside
- 01 Why MMS, why now Supervisory context and the scope of application across UAE banks and finance companies
- 02 What an MRMF must include Inventory, tiering, validation, governance, documentation and data lineage — the full spine
- 03 Model inventory & tiering Materiality-based risk rating that supervisors actually test
- 04 Independent validation From conceptual soundness through challenger models to ongoing monitoring
- 05 Governance & committees Roles, three lines of defence, and what the board is expected to see
- 06 MMS vs SR 11-7 Where the UAE standard departs from the global reference — and why it matters
- 07 Five implementation pitfalls The recurring failure modes observed in mid-size GCC institutions
- 08 A 12-month roadmap Sequencing an MMS-aligned MRMF without boiling the ocean