+Article 8 1

Article 8 1

1.   When assessing the internal governance and oversight of the institution in relation to the risk control unit referred to in Article 325bi(1), point (b), of Regulation (EU) No 575/2013, competent authorities shall verify whether that risk control unit:

(a)

is completely separate and independent from the personnel and the management functions responsible for the trading business areas;

(b)

is duly represented in the institution’s decision-making bodies and is involved in the decision-making process where any of the following issues are on the agenda:

(i)

the approval of new methodologies for assessing market risk and of any changes to existing methodologies;

(ii)

the approval of the establishment of a trading desk;

(iii)

the approval or update of reports and inventories within the remit of the risk control unit;

(iv)

the setting of the acceptable level of risk;

(v)

the setting and regular update of the internal limit structure;

(vi)

the approval of limit breaches;

(vii)

the approval of new products or new business lines;

(viii)

the approval of pricing models used for risk purposes;

(ix)

the approval of stress testing programmes;

(x)

the approval of IT infrastructure systems related to risk management tools;

(c)

is adequate, is proportionate to the size of the institution and the risks of the business, and has the resources necessary to perform its tasks effectively;

(d)

has sufficiently experienced, qualified and trained staff to undertake all relevant activities for the effective risk management of the internal model and for monitoring and challenging the actions of other units, in particular of the trading business units;

(e)

is responsible for the outcome of the calculations based on the internal-risk measurement model and the internal default risk model.

1. Panoramica

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1.1 Riferimenti

1.2 Requisiti identificati

1.3 Standard correlati

2. Requisiti identificati

Requisiti

3. Standard correlati

Standard