+Annex 4 – non-comprehensive list of methods available to either institutions for their assurance work or authorities for testing

Annex 4 – non-comprehensive list of methods available to either institutions for their assurance work or authorities for testing

a. Self-certification	Where the institution self-certifies its compliance with a rule. A self-assessment is the assessment by the institution of its own capabilities to perform the tasks requested in a timely manner and to meet the quality expected. Self-assessment assumes a review of the existing processes and procedures,
b. Self-assessment	and potentially a review of the lessons learnt from past stress situations. A self-assessment results in a gap analysis between what the institution’s capabilities and the authority’s expectations are.

c. Firm sharing re-sults of its sys-

tems or internal testing via demonstrations to authorities / walkthrough	A ‘walkthrough test’ traces an operation step -by-step through the MIS or procedures from its inception to the final disposition. Process-oriented, focused and flexible plausibility check of
d. Fire drill	selected steps in a playbook. Dry runs are real-life simulation exercises where institutions test (selected) parts of the elements identified by the
e. Dry run	resolution authority based on a test crisis event, and identify areas for improvement to ensure that the resolution strategy can be implemented in an effective and timely manner.
f. Desktop exercise	Initial stage to enhance playbooks and ensure standardisation, consistency and alignment with the requirements for the documentation of key processes by individual steps, including timing, responsibilities and dependencies. Back-office testing where figures are reconciled between different documents in order to assess the accuracy and reliability of a data set. Review of the resolvability capabilities by internal audit, as part
g. Internal audit	of their institution ’ s assurance work for continued resolvability.

h. Independent

third-party verifi-cation	Review of the resolvability capabilities by a third-party expert. In-depth review on a specific topic carried out at the
i. Deep dive	institution’s premises over a pre-defined timeline. On-site inspections are investigations and testing performed by authorities with a pre-defined scope and timeframe and take
j. On-site inspec-tion	place on the premises of the institutions. Inspections should be intrusive while adhering to the principle of proportionality and aim to provide a detailed snapshot of the adequacy and execution of processes.

1. Overview

,

Summary	Regulation

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

Requirements
Source	Requirement

3. Related Standards

Standards
Source	Requirement

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