2. When assessing whether the institution’s internal risk-measurement model is implemented with integrity as required by Article 325bi(1) of Regulation (EU) No 575/2013 in relation to the modellability assessment of risk factors that are assessed as modellable in accordance with Article 1 of Delegated Regulation (EU) 2022/2060, competent authorities shall:
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(a)
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verify, in relation to the results of the modellability assessment:
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(i)
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by using the inventory referred to in paragraph 1, point (b), that those risk factors meet any of the two criteria referred to in Article 1(1), points (a) and (b) of Delegated Regulation (EU) 2022/2060;
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(ii)
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where applicable, by using the inventory referred to in paragraph 1, point (b), that the period used for the modellability assessment complies with Article 1(2) of Delegated Regulation (EU) 2022/2060;
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(b)
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in relation to the requirements for considering a price verifiable as referred to in Article 2 of Delegated Regulation (EU) 2022/2060:
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(i)
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verify whether:
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(1)
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the institution’s internal systems and policies, and its contractual agreements with third-party vendors, ensure that the conditions referred to in Article 2(1) of Delegated Regulation (EU) 2022/2060 are met;
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(2)
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there are any prices that meet the conditions referred to in Article 2(2) of Delegated Regulation (EU) 2022/2060 that are considered verifiable;
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(ii)
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by reviewing the audit reports, verify whether the independent audit referred to in Article 2(6) of Delegated Regulation (EU) 2022/2060 is robust and covers all the aspects referred to in that paragraph;
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(iii)
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where applicable, review the contractual arrangements referred to in Article 2(7) of Delegated Regulation (EU) 2022/2060;
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(c)
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in relation to the requirements for considering a verifiable price as representative of a risk factor as referred to in Article 3 of Delegated Regulation (EU) 2022/2060, verify whether the mapping process and the criteria used to determine the representativeness of a price for a risk factor as referred to in Article 7(1), point (d), of that Delegated Regulation are sound.
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For the purposes of point (a)(ii), competent authorities shall verify whether the criteria referred to in paragraph 1, point (c) to identify whether risk factors are of the same type are sound and, by using the inventory referred to in paragraph 1, point (b), verify whether those criteria are applied correctly.
For the purposes of point (b)(i), competent authorities shall apply the assessment method referred to in paragraph 5.
For the purposes of point (c), competent authorities shall apply the assessment method referred to in paragraph 6.