+8 Application of risk parameters
---+194. In the application of the PD or LGD model and where institutions receive new information with …
---+8.1 Conservatism in the application of risk parameters
------+195. For the purpose of Article 171(2) of Regulation (EU) No 575/2013 institutions should apply …
------+196. For the purpose of paragraph 195(a) institutions should have a robust process for identifying …
------+197. For the purpose of paragraph 195(b) institutions should ensure that the occurrence of any of …
------+198. Institutions should consider the overall impact of the identified deficiencies and the …
------+199. For the purpose of paragraph 195(c) institutions should regularly monitor the implementation …
------+200. For the purpose of paragraph 195(d) institutions should specify adequate manuals and procedure …
---+8.2 Human judgement in the application of risk parameters
------+201. Institutions may use human judgement in the application of the model in the following cases …
------+202. Institutions should specify clear criteria for the use of qualitative model inputs and they …
------+203. For the purpose of Article 172(3) of Regulation (EU) No 575/2013 institutions should specify …
------+204. Institutions should document the scale and rationale of each override. Wherever possible …
------+205. Institutions should regularly monitor the level and justifications for overrides of inputs and …
------+206. Institutions should regularly analyse the performance of exposures in relation to which an …
------+207. Institutions should regularly assess the performance of the model before and after the …
---+8.3 Use of internal ratings and default and loss estimates
------+208. In accordance with Article 144(1)(b) of Regulation (EU) No 575/2013 and Articles 18 to 21 of …
------+209. For the purpose of paragraph 208 it may also be considered adequate to group continuous risk …
------+210. Where institutions use for internal purposes estimates of risk parameters that are different …
---+8.4 Calculation of IRB shortfall or excess
------+211. For the purpose of this chapter the difference between, on the one hand, general and specific …
------+212. Where the calculation for the overall non-defaulted portfolio referred to in Article 159 of …
------+213. For the purposes of adding any IRB excess to Tier 2 in accordance with Article 62 (d) of …
------+214. For the purposes of Article 159 of Regulation (EU) No 575/2013 institutions should not include …

8 Application of risk parameters

8 Application of risk parameters

1. Forbhreathnú

,
194. In the application of the PD or LGD model and where institutions receive new information with …

In the application of the PD or LGD model and where institutions receive new information with respect to a relevant risk driver or rating criterion, they should take this information into account in the rating assignment in a timely manner, in particular by ensuring both of the following:

  • (a) that the relevant IT systems are updated as soon as possible and that the corresponding rating and PD or LGD assignment is reviewed as soon as possible;
  • (b) where the new information relates to the default of an obligor, that the PD of the obligor is set to 1 in all relevant IT systems in a timely manner and in accordance with paragraph 108 of the Guidelines on the application of the definition of default under Article 178 of Regulation (EU) No 575/2013.
8.1 Conservatism in the application of risk parameters

8.1 Conservatism in the application of risk parameters
8.2 Human judgement in the application of risk parameters

8.2 Human judgement in the application of risk parameters
8.3 Use of internal ratings and default and loss estimates

8.3 Use of internal ratings and default and loss estimates
8.4 Calculation of IRB shortfall or excess

8.4 Calculation of IRB shortfall or excess

1.1 Tagairtí

1.2 Ceanglais aitheanta

1.3 Caighdeáin ghaolmhara

2. Ceanglais aitheanta

Ceanglais

3. Caighdeáin ghaolmhara

Caighdeáin
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