156. When identifying and measuring or assessing risks, an institution should develop appropriate …

When identifying and measuring or assessing risks, an institution should develop appropriate methodologies including both forward-looking and backward-looking tools. The methodologies should allow for the aggregation of risk exposures across business lines and support the identification of risk concentrations. The tools should include the assessment of the actual risk profile against the institution ’s risk appetite , as well as the identification and assessment of potential and stressed risk exposures under a range of assumed adverse circumstances against the institution ’s risk capacity . The tools should provide information on any adjustment to the risk profile that may be required. Institutions should make appropriately conservative assumptions when building stressed scenarios.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

• EBA - Published by the European Banking Authority at https://www.eba.europa.eu/