(a)

the adequacy of the documentation on the rationale, design, and operational details of the rating systems, as set out in Article 175 of Regulation (EU) No 575/2013, in accordance with Articles 31 and 32;

(b)

the adequacy of the structure of the rating systems, as referred to in Article 170 of Regulation (EU) No 575/2013, in accordance with Articles 33 to 36;

(c)

the application by the institution of the specific requirements for statistical models or other mechanical methods, as referred to in Article 174 of Regulation (EU) No 575/2013, in accordance with Articles 37 to 40.

(a)

review the institution’s relevant internal policies;

(b)

review the institution’s technical documentation on the methodology and the process of the rating systems development;

(c)

review the development manuals, methodologies and processes on which the rating systems are based;

(d)

review the minutes of the institution’s internal bodies responsible for approving the rating systems, including the management body or committees designated by it;

(e)

review the reports on the performance of the rating systems and the recommendations of the credit risk control unit, validation function, internal audit function or any other control function of the institution;

(f)

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

(g)

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

(a)

request and analyse data used in the process of developing the rating systems;

(b)

conduct their own estimations or replicate those of the institution performed during the development and monitoring of the rating systems using relevant data supplied by the institution;

(c)

request additional documentation from the institution or request that it provides analysis related to the choice of methodology for designing the rating system and provides information about the results obtained;

(d)

review the functional documentation of the IT systems relevant to the scope of the assessment of the rating systems design, operational details and documentation;

(e)

perform the competent authority’s own tests on the data of the institution or request the institution to perform tests proposed by the competent authority;

(f)

review other relevant documents of the institution.