1. When assessing whether the internal risk-measurement model is calculated and implemented with integrity as required by Article 325bi(1) of Regulation (EU) No 575/2013, competent authorities shall verify whether the institution’s IT systems related to market risk management and the IT systems supporting the internal model are robust enough to cope with execution errors. In particular, competent authorities shall:
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(a)
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assess the robustness of the IT systems during the last 250 business days;
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(b)
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verify whether:
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(i)
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appropriate remediation capabilities are in place in case of system breakdown;
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(ii)
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the institution is able to re-calculate any affected risk metrics;
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(iii)
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back-testing overshootings produced by technical problems are exceptional.
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