(a)

the detailed specification and practical application of the triggers for identifying the default of an obligor, in accordance with Article 27;

(b)

the robustness and effectiveness of the process used by an institution for identifying the default of an obligor, in accordance with Article 28;

(c)

the triggers and process used by an institution for the reclassification of a defaulted obligor to non-default status, in accordance with Article 29.

(a)

review the institution’s internal criteria, policies and procedures for establishing whether a default has occurred (‘definition of default’) and for the treatment of defaulted exposures;

(b)

review the roles and responsibilities of the units and management bodies involved in the identification of the default of an obligor and the management of defaulted exposures;

(c)

review the relevant minutes of the institution’s internal bodies, including the management body, or committees;

(d)

review the relevant findings of the internal audit or of other control functions of the institution;

(e)

review the progress reports on the efforts made by the institution to correct shortcomings and mitigate risks detected during relevant audits;

(f)

obtain written statements from or interview the relevant staff and senior management of the institution;

(g)

review the criteria used by the personnel responsible for manual assignment of the default status to an obligor or an exposure and of the return to the non-default status.

(a)

review the functional documentation of the IT systems used in the process of identification of the default of an obligor;

(b)

conduct sample testing and review documents relating to the characteristics of an obligor and to the origination and maintenance of the exposures;

(c)

perform their own tests on the data of the institution or require the institution to perform specific tests;

(d)

review other relevant documents of the institution.