Commercial Bank of Dubai extends risk management collaboration with 4most
Commercial Bank of Dubai has extended its partnership with 4most. The financial services consultancy is supporting the bank with the strengthening of its model risk management framework.
Founded in 1969 and headquartered in Dubai, Commercial Bank of Dubai is one of the UAE’s leading financial institutions, offering corporate, retail, Islamic and digital banking services to individuals and businesses. The bank has total assets exceeding AED 160 billion.
Since April 2023, Commercial Bank of Dubai has been working with 4most on enhancing its set of policies, processes, controls and governance structures that it uses to assess, monitor and control risks arising from the use of models in decision-making. Known as model risk management (MRM), the domain covers key areas including credit risk models, market risk models, fraud detection models, stress-testing models, but also AI learning models.
Working closely with the bank’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 Commercial Bank of Dubai’s Model Management and Governance Policy and Model Validation Standards.
Throughout the engagement, 4most has worked collaboratively with the bank’s risk and analytics teams, 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.
“Over the past three years, we have worked closely with Commercial Bank of Dubai to validate critical risk models, strengthen governance practices, and address evolving regulatory expectations. Our work has evolved into a highly collaborative partnership built on a shared commitment to robust model governance and continuous improvement,” said Saptadipa Deb, Associate Director at 4most.
The road ahead
Under the extended partnership, 4most will continue to help Commercial Bank of Dubai strengthen its model risk management capabilities.
In a statement on the engagement, a spokesperson of the bank said: “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 our strategic objectives.”
Deb commented: “As we move into the next phase of this engagement, we look forward to supporting Commercial Bank of Dubai through advanced validation techniques, ongoing monitoring, and the exploration of new approaches, including the responsible use of AI.”
UK-headquartered is an international consulting firm specialising in risk management, with a focus on the financial services industry. The award-winning firm has over 300 employees across offices in the UK, Europe and the Middle East.
