124. When assessing the soundness of the ICARAP, competent authorities should assess, where …

When assessing the soundness of the ICARAP, competent authorities should assess, where relevant distinguishing between the ICAAP and the ILAAP, whether:

• a. the arrangements, strategies and processes constituting the ICARAP are appropriate and proportionate to the nature, size and complexity of the investment firm’s activities;
• b. the arrangements, strategies and processes constituting the ICARAP are regularly reviewed by the investment firm;
• c. methodologies and assumptions applied by investment firms are appropriate and grounded in solid empirical input data;
• d. whether the confidence level is consistent with the risk appetite;
• e. whether the definition and composition of available internal capital or liquidity resources considered by the investment firm for the ICARAP is consistent with the risks measured by the investment firm and are eligible for the calculation of own funds and liquidity buffers.

Effectiveness of the ICARAP

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

• EBA -

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  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.