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4most is continuing its partnership with Commercial Bank of Dubai (CBD) to support the Bank’s independent validations of key risk models and is working in collaboration with CBD to strengthen their model risk management framework. This aids CBD's ongoing commitment to robust governance and alignment with evolving regulatory expectations.
The engagement builds on 4most’s long-standing collaboration with CBD, which began in April 2023. Since then, the partnership has expanded, with multiple phases of model validation successfully delivered and further phases currently underway as part of a structured, multi-year engagement.
The 4most approach
Working closely with CBD's risk and analytics teams, 4most has undertaken detailed validations across a wide range of risk models. This work has included comprehensive reviews of model methodologies, data inputs, assumptions, performance testing and implementation controls, alongside enhancements to documentation standards in line with CBD's Model Management and Governance Policy and Model Validation Standards, while also supporting compliance with the UAE Central Bank's Model Management Standards (MMS) and Model Management Guidance (MMG) requirements.
Throughout the engagement, 4most has worked collaboratively with CBD, adapting to evolving requirements by optimising model complexity where appropriate and, in some cases, combining models to improve efficiency and usability. 4most has also provided subject matter expertise and guidance on redevelopment approaches and best practices to help address identified model risks.
The road ahead
Saptadipa Deb, Associate Director at 4most, commented: "Our work with CBD has evolved into a highly collaborative partnership built on a shared commitment to robust model governance and continuous improvement. Over the past three years, we have worked closely with the CBD team to validate critical risk models, strengthen governance practices, and address evolving regulatory expectations. As we move into the next phase of this engagement, we look forward to supporting CBD in enhancing its model risk management capabilities through advanced validation techniques, ongoing monitoring, and the exploration of new approaches, including the responsible use of AI."
Commenting on the partnership, CBD stated: "Our partnership with 4most has supported the continued development of our model risk management framework and validation practices. Their technical expertise, collaborative approach, and understanding of regulatory expectations, have helped us enhance governance across a range of key models. As our requirements continue to evolve, we look forward to working together to strengthen our capabilities further and maintain a robust, scalable framework that supports the Bank’s strategic objectives."
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