61. This title specifies criteria for the assessment of the business model and strategy of the institution. Competent authorities should apply this assessment to an institution at the same level as the overall SREP assessment, but it can also be applied at business or product-line level, or on a thematic basis.
62. Without undermining the responsibility of the institution's management body for running and organising the business, or indicating preferences for specific business models, competent authorities should conduct regular business model analysis (BMA) to assess business and strategic risks and determine:
- the viability of the institution's current business model on the basis of its ability to generate acceptable returns over the following 12 months; and
- the sustainability of the institution's strategy on the basis of its ability to generate acceptable returns over a forward-looking period of at least 3 years, based on its strategic plans and financial forecasts.
63. Competent
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