Article 11 2

(a)

verify whether the recommendations, findings, and conclusions of the validation process are included in a validation report that identifies and describes:

(b)

verify whether the conclusions, findings and recommendations of the validation report are directly communicated to, and considered by, the management body of the institution before that management body approves a model to be applied for the calculation of own funds requirements and before any subsequent changes in the methodologies are applied;

(c)

verify whether any remedial measure proposed by the validation functions is documented in the validation report and is accompanied by a timeline that is adequate for fixing the identified deficiencies;

(d)

verify whether an escalation process is included in the internal policies of the institution for those remedial measures that are overdue, and whether, based on evidence from the past, that process is followed;

(e)

assess the overall quality of the outcome of the validation process by comparing the deficiencies identified in the assessment of the internal model in accordance with this Regulation with the deficiencies identified by the validation unit in the validation process.