497. In determining the overall SREP assessment, competent authorities should consider the findings of the assessments of the SREP elements, specifically:
a. the risks to which the institution is or may be exposed;
b. the likelihood that the institution's governance, control deficiencies and/or business model or strategy are likely to exacerbate or mitigate these risks, or expose the institution to new sources of risk;
c. whether the institution's own funds and liquidity resources provide sound coverage of these risks; and
d. the potential for positive and negative interaction between the elements (e.g. competent authorities may consider a strong capital position as a potential mitigating factor for certain concerns identified in the area of liquidity and funding, or by contrast, that a weak capital position may exacerbate concerns in that area).
498. On the basis of these considerations, competent authorities should determine the institution's viability, defined as its proximity to a
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