(a)

the robustness of the arrangements, mechanisms and processes of validation of rating systems of an institution and the appropriateness of the personnel responsible for the performance of the validation (‘validation function’) as referred to in points (c) and (f) of Article 144(1), point (d) of Article 174, Article 185 and Article 188 of Regulation (EU) No 575/2013, in respect of:

(b)

the internal governance and oversight of the institution, including the credit risk control unit and the internal audit of the institution, as referred to in Articles 189, 190 and 191 of Regulation (EU) No 575/2013 in respect of:

(a)

review the relevant internal policies and procedures of the institution;

(b)

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

(c)

review the relevant reports relating to the rating systems, as well as any conclusions and decisions taken on the basis of those reports;

(d)

review the relevant reports on the activities of the credit risk control, internal audit, oversight and validation functions prepared by the staff responsible for each of those functions or by any other control function of the institution, as well as the conclusions, findings and recommendations of those functions;

(e)

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

(a)

review the roles and responsibilities of all staff involved in the validation function;

(b)

review the adequacy and appropriateness of the annual validation work plan;

(c)

review the validation manuals used by the validation function;

(d)

review the process of categorisation of the findings and the relevant recommendations in accordance with their materiality;

(e)

review the consistency of the conclusions, findings and recommendations of the validation function;

(f)

review the role of the validation function in the internal approval procedure of rating systems and all related changes;

(g)

review the action plan of each relevant recommendation, also in terms of its follow-up, as approved by the appropriate management level.

(a)

review the roles and responsibilities of all relevant staff and senior management of the credit risk control unit;

(b)

review the relevant reports submitted by the credit risk control unit and the senior management, to the management body or to the designated committee thereof.

(a)

review the relevant roles and responsibilities of all relevant staff involved in the internal audit;

(b)

review the adequacy and appropriateness of the annual internal audit work plan;

(c)

review the relevant auditing manuals and work programs and the findings and recommendations included in the relevant audit reports;

(d)

review the action plan of each relevant recommendation, also in terms of its follow-up, as approved at the appropriate management level.