54. Competent authorities should apply proportionality principles, allowing for methodological …

Competent authorities should apply proportionality principles, allowing for methodological simplifications in relation to the size, nature, and complexity of financial entities’ activities , as well as the materiality of the risks . The proportionality principle should extend to reporting requirements, scenario design, and modelling expectations, ensuring an adequate balance between analytical robustness and practical feasibility.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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