40. In view of having internal governance arrangements pursuant to Article 74 and 88 of Directive …

In view of having internal governance arrangements pursuant to Article 74 and 88 of Directive 2013/36/EU, institutions should, in relation to IRRBB, ensure the following:

• (a) That their management body bears the ultimate responsibility for the oversight of the IRRBB management framework, the institution’s risk appetite framework and the amounts, types and distribution of internal capital to adequately cover the risks. The management body should de termine the institution’s overall IRRBB strategy and approve the corresponding policies and processes. The management body may, however, delegate the monitoring and management of IRRBB to senior management, expert individuals or an asset and liability management committee under the conditions further specified in paragraph 42.
• (b) That they have in place an IRRBB management framework that establishes clear lines of responsibilities and that consists of a limit system, policies, processes and internal controls including regular independent reviews and evaluations of the effectiveness of the framework.
• (c) That the arrangements, processes and mechanisms referred for the assessment of IRRBB are comprehensive and proportionate to the nature, scale and complexity of the risks inherent in the business model and the institution's activities.

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/