26. Use Test

1. Overview

Summary	Regulation
1. An institution should document how the IRC process is reported internally, its resulting …	An institution should document how the IRC process is reported internally, its resulting risk-measurement judgements and the role these judgements play in the (risk) management of the institution.
2. The procedures that, given the judgement of the IRC, lead to potential appropriate corrective …	The procedures that, given the judgement of the IRC, lead to potential appropriate corrective action should be in place and well embedded within risk management.
3. A comparison of the ways internal market risk model outputs are reported, judged, audited and …	A comparison of the ways internal market risk model outputs are reported, judged, audited and used internally by specific departments within the institution is considered a helpful way to clarify the use test.

Requirements
Source	Requirement

Standards
Source	Requirement

EBA -
EN: Guidelines and other publications of the European Banking Authority (EBA), https://www.eba.europa.eu/. © European Banking Authority. Reproduction is authorised provided the source is acknowledged (EBA legal notice). Divided into sections and converted into the GRCA format, the wording unchanged. Only the versions published by the EBA are authoritative.

DE: Leitlinien und weitere Veröffentlichungen der Europäischen Bankenaufsichtsbehörde (EBA), https://www.eba.europa.eu/. © European Banking Authority. Wiedergabe mit Quellenangabe gestattet (Rechtlicher Hinweis der EBA). In Abschnitte aufgeteilt und in das GRCA-Format umgewandelt, der Wortlaut unverändert. Maßgeblich sind allein die von der EBA veröffentlichten Fassungen.