63. Because of the complexity involved in modelling hypothetical and macroeconomic-based risk …

Because of the complexity involved in modelling hypothetical and macroeconomic-based risk factors/scenarios, institutions should be aware of the model risk involved and ensure that the following have been performed when setting those factors/scenarios:

• a) a regular and sufficiently conservative expert review of the model’s assumptions and mechanics has been performed and a conservative modelling approach to account for model risk has been followed;
• b) a sufficient degree of conservatism as appropriate has been applied when making assumptions that are difficult to measure in a quantitative way (e.g. diversification, exponential growth projected, fees projected, forward-looking management views) but may have an impact on the model’s outputs (e.g. the outputs of pre-provision net revenue models should be based on sufficient statistical support as well as business considerations); and
• c) the dependencies and sensitivities of the results on the assumptions have been acknowledged and their impact is assessed on a regular basis.

1. Forbhreathnú

1.1 Tagairtí

1.2 Ceanglais aitheanta

1.3 Caighdeáin ghaolmhara

2. Ceanglais aitheanta

3. Caighdeáin ghaolmhara

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  EN: Guidelines and other publications of the European Banking Authority (EBA), https://www.eba.europa.eu/. © European Banking Authority. Reproduction is authorised provided the source is acknowledged (EBA legal notice). Divided into sections and converted into the GRCA format, the wording unchanged. Only the versions published by the EBA are authoritative.

  DE: Leitlinien und weitere Veröffentlichungen der Europäischen Bankenaufsichtsbehörde (EBA), https://www.eba.europa.eu/. © European Banking Authority. Wiedergabe mit Quellenangabe gestattet (Rechtlicher Hinweis der EBA). In Abschnitte aufgeteilt und in das GRCA-Format umgewandelt, der Wortlaut unverändert. Maßgeblich sind allein die von der EBA veröffentlichten Fassungen.