263. To achieve a comprehensive understanding of the investment firm’s risk profile regarding risks …

To achieve a comprehensive understanding of the investment firm’s risk profile regarding risks not covered by Pillar 1 own funds requirements, competent authorities should review the governance and risk management framework that reduce the risk arising from other sources of risks. To this end, competent authorities should assess the following elements while taking into account the volume, nature and complexity of the investment firm’s activities:

• a. the investment firm’s strategy properly reflects the investment firm’s appetite for these risks and is consistent with the overall risk appetite;
• b. the investment firm has internal guidelines and policies to ensure a sound risk culture;
• c. the investment firm has appropriate framework for the management, measurement, monitoring and control of interest rate risk arising from non-trading book activities;
• d. the investment firm has an appropriate framework for the management, measurement, monitoring and control of IT risks, with sufficient (both qualitative and quantitative) human and technical resources;
• e. the investment firm has clearly defined policies and procedures for the control of operational risk.

6.6.4 Summary of findings and scoring

1. Pārskats

1.1 Atsauces

1.2 Identificētās prasības

1.3 Saistītie standarti

2. Identificētās prasības

3. Saistītie standarti

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