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Version date: 1 January 2019 - onwards
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4.9 Identification of key vulnerabilities (paras. 85-86)

85. Having conducted the BMA, competent authorities should assess the key vulnerabilities to which the institution's business model and strategy expose it or may expose it, considering:

a. poor expected financial performance;

b. reliance on an unrealistic strategy;

c. excessive concentrations or volatility (e.g. of earnings);

d. excessive risk-taking;

e. funding structure concerns; and/or

f. significant external issues (e.g. regulatory threats, such as mandating of 'ring-fencing' of business units).

86. Following the above assessment, competent authorities should form a view on the viability of the institution's business model and the sustainability of its strategy, and any necessary measures to address problems and concerns.

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