+Article 6 3

Article 6 3

3.   For the purposes of paragraph 1, first subparagraph, point (d), competent authorities shall verify whether:

(a)

the senior management of the institution takes appropriate corrective actions where weaknesses of the internal risk-measurement model or the internal default risk model are identified by any of the following:

(i)

the risk control unit;

(ii)

the qualified parties tasked with the validation of the internal model (‘validation function’);

(iii)

the internal audit function;

(iv)

any other control function of the institution;

(b)

the senior management of the institution is informed of, and follows up on, the recommendations made by the internal audit, the risk control unit, the validation function, in relation to the internal risk-measurement model or the internal default risk model;

(c)

the senior management of the institution is able to ensure the overall quality of the institution’s governance of the valuation of positions included in the internal risk-measurement model or the internal default risk model.

1. Overview

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1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

Requirements

3. Related Standards

Standards