55. For each bucket of a risk indicator, the DGS should assign a corresponding IRS. The DGS should …

For each bucket of a risk indicator, the DGS should assign a corresponding IRS. The DGS should assign an IRS of 100 to the riskiest bucket and an IRS of 0 to the least risky bucket. The DGS may deviate from this rule for risk indicators which can only have two possible values and where one of which represents an average risk level. If the DGS decides to make use of this possibility, then it should assign an IRS of 50 to the bucket representing the average risk level while the IRS assigned to the other bucket should be either 100 or 0.

The ‘sliding scale’ method for the IRS

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/