Both the MMS and MMG share three key objectives. The first objective is to ensure that models employed by UAE banks meet quality standards to adequately support decision-making and reduce Model Risk. The second objective is to improve the homogeneity of model management across UAE banks. The third objective is to mitigate the risk of potential underestimation of provisions and capital across UAE banks.
1.2.2
The MMG outlines techniques based on commonly accepted practices by practitioners and academics, internationally. The majority of its content has been subject to consultation with numerous subject matter experts in the UAE and therefore it also reflects expected practices amongst UAE institutions.