Book traversal links for A. Review of Adequacy of Risk Assessment
A. Review of Adequacy of Risk Assessment
C 52/2017 STA Effective from 1/12/202247.The Central Bank will assess the degree to which internal requirements and processes incorporate the full range of material risks faced by the bank. The Central Bank will also review the adequacy of risk measures used in assessing internal capital adequacy and the extent to which these risk measures are also used operationally in setting limits, evaluating business line performance, and evaluating and controlling risks more generally. In addition, the Central Bank will review the results of stress tests (including sensitivity analyses and scenario analyses) conducted by the banks and how these results relate to capital plans.