341. Following the above assessments, competent authorities should form a view on the institution's IRRBB. This view should be reflected in a summary of findings, accompanied by a score based on the considerations specified in Table 7. If, based on the materiality of certain risk sub-categories, the competent authority decides to assess and score them individually, the guidance provided in this table should be applied, as far as possible, by analogy.
Table 7. Supervisory considerations for assigning a score to IRRBB
|
Risk score |
Supervisory view |
Considerations in relation to inherent risk |
Considerations in relation to adequate management and controls |
|---|---|---|---|
|
1 |
There is a low risk of significant prudential impact on the institution considering the level of inherent risk and the management and controls. |
• The sensitivity of the economic value to changes in interest rates is not material/very low. • The sensitivity of earnings to changes in interest rates is not material/ver |