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Credit Risk  & Internal Control 

Our Services

A robust internal control framework translates credit-risk policy into repeatable practice. This page summarises the governance, controls and reporting capabilities required to manage credit risk, support IFRS 9 ECL provisioning and ensure ICAAP stress-testing outputs are auditable and regulator-ready. The framework is aligned with the CBUAE Credit Risk Management Standard and GCC supervisory expectations.

Why this matters

Strong controls reduce model, data and reporting risk and demonstrate preparedness to supervisors, auditors and stakeholders. A clear framework ensures that provisioning, staging (SICR), model changes and stress-testing are governed, documented and traceable — helping to protect capital, financial statement integrity and stakeholder confidence.

At a glance — what the framework covers

  • Governance & responsibilities (Board → Risk Committee → Senior Management → Model Owners)

  • Policy pillars: risk appetite, underwriting/delegation, SICR/staging, restructuring and provisioning

  • Controls: data lineage, reconciliations, model versioning and validation

  • Reporting & disclosure: board packs, regulatory annexes and audit trails

  • Deliverables: policy documents, validation reports, reconciliation logs and remediation trackers

Diagnostic→ Policy drafting & RACI → Controls & automation → Validation & scenario alignment → Embed & monitor

Governance & responsibilities

Board & Risk Committee

Senior Management

Core functions and accountabilities

  • Programme Lead

  • Model Owners

  • Validation / Internal Audit

  • Data & IT 

  • Business Owners

Core policy components 

  • Risk appetite & limit architecture 

  • Underwriting & delegation 

  • SICR / Staging rules 

  • Restructuring policy 

  • Provisioning & classification 

  • Collateral management 

Control mechanisms — practical checks

Data & system controls

Model & analytics controls

Process & operational controls

IT & security controls

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