371. In determining the overall SREP assessment, competent authorities should consider the findings …

In determining the overall SREP assessment, competent authorities should consider the findings of the assessments of the SREP elements, specifically:

• a. the risks to which the investment firm is or may be exposed;
• b. the likelihood that the investment firm’s governance, control deficiencies and/or business model or strategy are likely to exacerbate or mitigate these risks, or expose the investment firm to new sources of risk;
• c. whether the investment firm’s own funds and liquidity resources provide sound coverage of these risks; and
• d. the potential for positive and negative interaction between the elements (notably competent authorities may consider a strong capital position as a potential mitigating factor for certain concerns identified in the area of liquidity and funding, or by contrast, that a weak capital position may exacerbate concerns in that area).

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/