Institutions must ensure that they acquire and retain adequate internal knowledge and core competences about modelling techniques. Full model ownership requires that institutions must have an appropriate number of internal employees with technical skills to understand and own models, even with the contribution of third parties. The contribution of external consultants cannot justify a lack of internal technical employees.
4.8.2
All institutions must ensure that they have a minimum number of technical employees to manage models independently of third parties. The skills of these employees must sufficient to cope with the complexity of the models implemented at the institution. If an institution does not have the required internal skills to manage complex models, these models should be simplified or replaced.
4.8.3
For branches or subsidiaries of foreign institutions, the internal technical expertise may reside at the parent group level, which are responsible for the oversight of the local implementation and/or usage of models. The technical experts from the parent entity must also oversee any third parties employed to deliver models for the local entity. The local branches or subsidiaries must nonetheless have employees with sufficient skills to ensure that models are suitably calibrated to the UAE context and meet the CBUAE requirements in this regard.
4.8.4
Knowledge about a model must not be restricted to a single individual in the organisation. Instead, knowledge must be shared amongst several staff members. This is necessary for the purpose of sound decision-making related to modelling choices and to minimise the impact of staff departure on the smooth continuation of model life-cycle execution.
4.8.5
Institutions are expected to recognise the scarcity of technical staff able to genuinely understand and own models. Therefore, they must put in place development plans and initiatives to retain and manage their technical employees appropriately. The strategic management of technical resources must include full and adequate cooperation of the institutions’ human resources function.