5. For the purposes of paragraph 4, competent authorities may:
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(a)
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require the institution to apply scenarios of future shocks to the function parameters as made in the internal risk-measurement model;
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(b)
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require the institution to derive the volatility of a point in the curve;
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(c)
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require the institution to obtain the volatility of the point in the curve referred to in point (b);
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(d)
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compare the volatility obtained in accordance with point (b) with the observed volatility obtained in accordance with point (c).
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For that assessment, competent authorities shall base themselves on both the period referred to in Article 325bc(4), point (c), of Regulation (EU) No 575/2013 and the period of financial stress referred to in Article 325bc(2), point (c), of that Regulation.