| • | The nature of activities implies • nonmaterial risk/very low | controls There is consistency between the investment |
| There is a low risk of significant prudential • impact on the 1 investment firm considering the level of inherent risk and • the management and controls. | conduct risk. Exposure to interest rate risk arising from non-trading book activities is not material/very • low. The level of other operational risks not covered by Pillar 1, including in particular ICT risk as well as regulatory, legal and fiscal risks, is not material/very low. • | firm’s management and controls and its overall strategy and risk appetite. The organisational framework is robust with clear allocation of responsibilities and dedicated management and control functions. Measurement, monitoring and reporting systems are |
| There is a medium- • low risk of significant prudential impact on • 2 the investment firm considering the level of inherent risk and • the management and controls. | The nature of activities implies low to medium conduct risk. Exposure to interest rate risk arising from non-trading book activities is low to medium. The level of other operational risks not covered by Pillar 1 is low to medium. | appropriate. |
| There is a medium- • | The nature of activities implies • medium to high conduct risk. | There are deficiencies in the investment firm’s |
| 3 high prudential the considering of inherent investment risk of impact significant the risk level firm and on • • | arising activities The Exposure level from is to of medium interest other non-trading to operational high. rate book risk | management compared strategy if relevant. and to risk and its appetite, controls overall |
| the management and controls. | risks not covered by Pillar 1 is • medium to high. | The organisational framework lacks clear allocation of |
| There significant impact is a high on prudential risk the of • • | The high Exposure nature conduct to of risk. interest activities rate implies risk | responsibilities dedicated and control functions. management or |
| 4 investment firm considering of the controls. inherent management the risk level and and • | arising from non-trading book • high. activities The risks level not is covered of high. other by operational Pillar 1 is | Measurement, monitoring and not enough, not reported. sufficient properly reporting some monitored or systems risks consistent are are or |