8. For the purposes of paragraph 3, point (b)(iii), competent authorities shall:
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(a)
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identify the most material risk factors for which the institution applied the treatment referred to in Article 14(2) of Delegated Regulation (EU) 2022/2059;
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(b)
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for the risk factors referred to in point (a), acquire a comprehensive understanding of the techniques of the valuation systems that are used to derive the value of the risk factor from the input data, as referred to in Article 14(2), point (b), of Delegated Regulation (EU) 2022/2059;
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(c)
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on the basis of point (b) of this paragraph, assess whether the conditions referred to in Article 14(2) Delegated Regulation (EU) 2022/2059 are met, taking into account any rationale provided in accordance with Article 15(3) of that Regulation.
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The intensity at which the competent authority performs the assessment shall be proportionate to the effect that the alignment of risk factors’ values has on the theoretical changes and on the profit and loss attribution test results as referred to in Articles 15(2) of Delegated Regulation (EU) 2022/2059.