131. The management body or its delegates should, in particular, be responsible for the following …

The management body or its delegates should, in particular, be responsible for the following:

• (a) Understanding the nature and the level of the CSRBB exposure. The management body should ensure that there is clear guidance regarding the risk appetite for CSRBB in respect of the institution’s business strategies.
• (b) Establishing that the appropriate actions are taken to assess and monitor CSRBB, consistent with the approved strategies and policies. In this regard, the management body or its delegates are responsible for setting:
• i. Systems and standards for monitoring CSRBB, valuing positions and assessing performance, including procedures for updating shock, parameters and stress scenarios and key underlying assumptions driving the institution’s CSRBB analysis;
• ii. A comprehensive CSRBB reporting and review process; and
• iii. Effective internal controls and management information systems (MISs).
• (c) Approving major CSRBB risk-taking initiatives in advance of implementation. Positions related to internal risk transfers between the non-trading book and the trading book should be properly documented.
• (d) Carrying out the oversight of the approval, implementation and review of CSRBB management policies and procedures. The level of and changes in the institution’s CSRBB exposure should be provided regularly to the management body.
• (e) Ensuring that the validation of CSRBB measurement methods and assessment of corresponding model risk are included in a formal policy process that should be reviewed and approved by the management body or its delegates.
• (f) Understanding and assessing the functioning of its delegates in monitoring and controlling CSRBB, consistent with policies approved by the management body, on the basis of regular reviews of timely and sufficiently detailed information.
• (g) Understanding the implications of the institution’s CSRBB strategies and their potential linkages with market, liquidity, credit and operational risk but without requiring all the management body members to be experts in the area. Some of the members should have sufficient technical knowledge to question and challenge the reports made to the management body. The institution should establish that management body members are responsible for ensuring that senior management has the competence to understand CSRBB and that CSRBB management are provided with adequate resources.

1. Áttekintés

1.1 Hivatkozások

1.2 Azonosított követelmények

1.3 Kapcsolódó szabványok

2. Azonosított követelmények

3. Kapcsolódó szabványok

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