4.2.1 Quality of data

15. In order to comply with the requirement of Article 76 of the RTS on IRB assessment methodology that institutions should have sound policies, processes and methods for assessing and improving the quality of data used for the purpose of credit risk measurement and management processes, institutions should ensure that those policies apply to all data used in model development and calibration, as well as to the data used in the application of the risk parameters.

16. In order for the data used in the model development and in the application of risk parameters as inputs into the model to meet the requirements of accuracy, completeness and appropriateness specified in Article 174(b) of Regulation (EU) No 575/2013, it should be sufficiently precise to avoid material distortions of the outcome of the assignment of exposures to obligors or facility grades or pools, and it should not contain any biases which make the data unfit for purpose.

4.2.2 Governance for data representativeness