Central Bank of the UAE Risk Management Standards

CONTENTS

INTRODUCTION ...2

Article 1: Definitions ...2

Article 2: Risk Governance Framework ...4

Risk Appetite Statement...7

Policies and Procedures...8

Internal Capital Adequacy Assessment Process (ICAAP)...9

Article 3: Risk Management Function...9

Article 4: Risk Measurement and Use of Models...10

Article 5: Stress-Testing of Material Risks ...11

Article 6: Information Systems and Internal Reporting ...12

Article 7: Strategic and Operational Decisions ...13

Article 8: Group Risk Management...13

Article 9: Disclosures ...14

Article 10: Islamic Banking...14

INTRODUCTION

1. These Standards form part of the Risk Management Regulation. All banks must comply with these Standards, which expand on the Regulation. These Standards are mandatory and enforceable in the same manner as the Regulation.
2. A bank's board of directors is in ultimate control of the bank and accordingly, ultimately responsible for the bank's comprehensive approach to risk management. There is no one-size-fits-all or single best solution. Accordingly, each bank could meet the minimum requirements of the Regulation and Standards in a different way and thus may adopt an org...