Competent authorities shall assess that an institution demonstrates the stability and robustness of the AMA output by confirming at least the following:
that before granting the permission to use the AMA for regulatory purposes, the institution calculated its own funds requirements for operational risk under both the AMA and the less sophisticated approach previously applicable to it, and that it performed that calculation:
on a reasonably regular basis, and at least quarterly;
covering all relevant legal entities that would use the AMA at the date of the initial implementation;
covering all the operational risks that would be covered by the AMA at the date of the initial implementation.
that the institution complies with at least the following:
the operational risk management process and the operational risk measurement system have been developed and tested;
any problems have been resolved and the system and attendant process have been fine-tuned;
it has ensured that the operational risk measurement system generates results which conform to the institution's expectations, including taking account of information from both the institution's existing and previous systems;
it has demonstrated it can quickly vary model parameters to understand the impact of changed assumptions with minimal systems adjustments or manual interventions;
it is able to make appropriate capital adjustments to the own funds requirements before the first "live use" of the AMA;
it has demonstrated over a reasonable period that the new systems and reporting processes are robust and generate management information that the institution can use to identify and manage operational risk.
For the purposes of point (a), the assessment of the calculation performed shall cover at least two consecutive quarters.
Competent authorities may grant permission to use the AMA where the institution demonstrates its continuous comparison of the calculation of its own funds requirements for operational risk under the AMA against the less sophisticated approach previously applicable to it, for one year after the permission is granted.