94. Having conducted the BMA, competent authorities should assess the key vulnerabilities to which …

Having conducted the BMA, competent authorities should assess the key vulnerabilities to which the investment firm’s business model and strategy expose it or may expose it, considering any of the following:

• a. poor expected financial performance;
• b. reliance on an unrealistic strategy;
• c. excessive concentrations or volatility (including earnings, revenues and customers subject to enhanced customer due diligence set out in Chapter II, Section 3 of Directive (EU) 2015/849, high risk third countries in accordance with Article 9 of that Directive);
• d. excessive risk-taking;
• e. cash-flow and financing structure concerns;
• f. significant external issues (including regulatory threats, such as mandating of ‘ring-fencing’ of business units); and
• g. ESG risks and their impact on the viability and sustainability of the business model and long-term resilience of the investment firm.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

• 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.