189. Through the assessment of inherent market risk, competent authorities should determine the …

Through the assessment of inherent market risk, competent authorities should determine the main drivers of the investment firm’s market risk exposure and evaluate the risk of significant prudential impact on the investment firm. The assessment of inherent market risk should be structured around the following main steps:

• a. preliminary assessment;
• b. assessment of the nature and composition of the investment firm’s positions subject to risk-to-market;
• c. assessment of profitability;
• d. assessment of market concentration risk;
• e. assessment of the prudent valuation framework for trading book positions; and
• f. assessment of the model risk (i.e. models used for regulatory purposes).

Preliminary assessment

1. Pārskats

1.1 Atsauces

1.2 Identificētās prasības

1.3 Saistītie standarti

2. Identificētās prasības

3. Saistītie standarti

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