| Risk Supervisory view score | Considerations • | in relation to inherent risk The nature and composition of market risk exposures imply not material/very low risk. | • | Considerations adequate There between market strategy | in relation to management and controls is consistency the institution’s risk policy and and its overall |
| There is a low risk of significant prudential impact on the 1 institution considering the level of inherent risk and the management and controls. | • • • • | The institution’s exposures to market risk are non-complex. The level of market risk concentration is not material/very low. The institution’s market risk exposures generate non-volatile returns. The nature and | • • | strategy The framework is robust, responsibilities separation between management functions. Market monitoring | and risk appetite. organisational for market risk with clear and a clear of tasks risk-takers and and control risk measurement, and reporting |
| There is a medium-low risk of significant prudential impact 2 on the institution considering the the management level of inherent and controls. risk and | • | composition of market risk exposures imply low to medium risk. The institution’s complexity market of risk the | • | systems Internal control market in line institution’s Considerations | are appropriate. limits and the framework for risk are with sound and the risk in relation to |
| Risk Supervisory view score | Considerations • • • • | in relation to inherent risk exposures is low to medium. The level of market risk concentration is low to medium. The institution’s market risk exposures generate returns that have a low to medium degree of volatility. The nature and composition of market risk exposures imply medium to high risk. The complexity of the institution’s market risk | • | adequate management risk appetite. There consistency institution’s policy and | management and controls strategy and is not full between the market risk strategy and its |
| There is a medium-high risk of significant prudential impact 3 on the the the management level institution of inherent and considering controls. risk and | • • • | exposures is medium to high. The concentration to high. level of market is medium risk The institution’s exposures to market risk generate returns that have a medium to high degree of volatility. The nature and composition of market risk exposures imply high risk. | • • | overall profile. The framework does separate and risktakers management functions. Market monitoring systems undertaken | strategy and risk not for organisational market sufficiently risk responsibilities tasks between and and control risk measurement, and reporting are not with sufficient |
| There is a high risk of significant prudential impact 4 on the institution considering the level of inherent risk and the management and controls. | • • • | The complexity of the institution’s market risk exposures is high. The level of market risk concentration is high. The institution’s exposures to market risk generate returns that have a high degree of volatility. | • | accuracy Internal control market with the management risk appetite. | and frequency. limits and the framework for risk are not in line institution’s risk strategy or |