(a)

the decision-making process of the institution, its hierarchy, reporting lines- and levels of responsibility are clearly laid down in the internal documentation of the institution and consistently reflected in the minutes of its internal bodies;

(b)

both the management body or the committee designated by it and the senior management approve at least the following material aspects of the rating systems:

(c)

the management body or the committee designated by it sets an appropriate organisational structure for the sound implementation of the rating systems by way of a formal decision;

(d)

the management body or the committee designated by it approves by way of a formal decision the specification of the acceptable level of risk, taking into account the internal rating system scheme of the institution;

(e)

the senior management has a good understanding of all rating systems of the institution, of their design and operation, of the requirements for the IRB Approach and of the institution’s approach to meeting those requirements;

(f)

the senior management notifies the management body or the committee designated by it of material changes to or exceptions from established policies that materially impact the operations of the institution’s rating systems;

(g)

the senior management is in a position to ensure on an ongoing basis the good functioning of the rating systems;

(h)

the senior management takes relevant measures where weaknesses of the rating systems are identified by the credit risk control, the validation, the internal audit or any other control function.