3. For the purposes paragraph 2, point (b), competent authorities may:
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(a)
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require the institution to apply scenarios of future shocks to the curve’s risk factors as made in the internal risk-measurement model;
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(b)
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require the institution to derive the volatility of a point in the curve that is not a risk factor;
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(c)
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require the institution to obtain the observed volatility of the point in the curve referred to in point (b);
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(d)
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compare the volatility obtained in accordance with point (b) with the observed volatility obtained in accordance with point (c).
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For the assessment referred to in paragraph 2, point (b), competent authorities shall base themselves on both the period referred to in Article 325bc(4), point (c), of Regulation (EU) No 575/2013 and the period of financial stress referred to in Article 325bc(2), point (c), of that Regulation.