20.2 RMF’s role in material changes

In line with Section 18, before decisions on material changes or exceptional transactions are taken, the RMF should be involved in the evaluation of the impact of such changes and exceptional transactions on the institution ’s and group’s overall risk , and should report its findings directly to the management body before a decision is taken.

The RMF should evaluate how risks identified could affect the institution ’s or group’s ability to manage its risk profile, its liquidity and its sound capital base under normal and adverse circumstances.