Institutions must implement a comprehensive reporting framework to ensure that Model Risk is analysed and assessed for the purpose of implementing risk mitigating measures.
4.10.2
Reporting must be implemented at several levels of the organisation, including to the Model Oversight Committee, the institution’s Risk Committee and the Board. Reporting must be specific and adapted to the nature of the stakeholders. The status of model management and Model Risk across the entire organisation must be presented to the Model Oversight Committee and the institution’s Risk Committee at a minimum on a quarterly basis, and to the Board or a specialised sub-committee of the Board at least on a yearly basis.
4.10.3
Reporting must be designed to support Model Risk management covering the identification, measurement, monitoring and mitigation of these risks. In particular, reporting must cover (i) the status of the model lifecycle for each model, (ii) the results of model performance assessment, (iii) the risks arising from the uncertainty surrounding certain modelling decisions, and (iv) the status and estimation of Model Risk throughout the organisation.
4.10.4
Institutions must comply with model reporting requirements from the CBUAE, as they evolve through time.