74. Competent authorities should undertake the following steps as part of the BMA in a …

Competent authorities should undertake the following steps as part of the BMA in a proportionate manner, i.e. adjusting the level of detail of the analysis to the specific situation of the investment firm, the perceived risk, as well as the scale and complexity of its activities:

• a. preliminary assessment;
• b. identification of the areas of focus;
• c. assessment of the business environment;
• d. quantitative analysis of the current business model;
• e. qualitative analysis of the current business model;
• f. analysis of the forward-looking strategy (including planned changes to the business model);
• g. assessment of business model viability over the following 12 months;
• h. assessment of sustainability of the strategy;
• i. identification of key vulnerabilities to which the investment firm’s business model and strategy expose it or may expose it; and
• j. summarising of the findings and scoring.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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