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Version date: 1 January 2019 - onwards
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4.6 Analysis of the strategy and financial plans (paras. 78-80)

78. Competent authorities should undertake a quantitative and qualitative forward-looking analysis of the institution's financial projections and strategic plan to understand the assumptions, plausibility and riskiness of its business strategy.

79. Areas for analysis by competent authorities should include:

a. overall strategy: competent authorities should consider the main quantitative and qualitative management objectives;

b. projected financial performance: competent authorities should consider projected financial performance, covering the same or similar metrics as those covered in the quantitative analysis of the current business model;

c. success drivers of the strategy and financial plan: competent authorities should determine the key changes proposed to the current business model to meet the objectives;

d. assumptions: competent authorities should determine the plausibility and consistency of the assumptions made by the institution that drive its strategy and forecasts; these m

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