Appendix II: Guidance for bank questionnaire ratings
The following guidance was provided to the banks regarding the rating scale within the questionnaire.
For the purpose of this exercise, the "implementation" comprises formulation of internal policy by the bank with the approval of its board of directors to implement the principles, dissemination of the policy to all relevant functions in the bank, periodic review of the policy, execution of the policy by those responsible, compliance with the policy by various departments and functional units of the bank, as well as monitoring and review of compliance by the board and senior management.
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Rating |
Description |
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4 - Principle is fully complied with |
The bank is entirely compliant with the principle, there is evidence to substantiate the assessment, and there are no outstanding non-compliance issues identified (eg issues raised through self-assessment or by groups such as internal audit, supervisors or other third parties). |
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Example - Para 39(b): Internal loss events are analysed to provide insight into the causes of large losses and information on whether control failures are isolated or systemic. The bank uses a consistent approach to perform root cause analysis and analysis of control effectiveness for material losses, as well as for monitoring of developed action plans. | |