SECTION 2 Core modelling assumptions of the operational risk measurement system
Competent authorities shall assess an institution's standards relating to the core modelling assumptions of the operational risk measurement system, as referred to in points (a) and (c) of Article 322(2) of Regulation (EU) No 575/2013, by verifying at least the following:
that the institution develops, implements and maintains an operational risk measurement system that is methodologically well founded, effective in capturing the institution's actual and potential operational risk, and reliable and robust in generating AMA own funds requirements;
that the institution has appropriate policies on the building of the calculation data set, in accordance with Article 29;
that the institution applies the appropriate level of granularity in its model, in accordance with Article 30;
that the institution has in place an appropriate process for the identification of loss distributions, in accordance with Article 31;
that the institution determines the aggregate loss distributions and risk measures in an appropriate manner, in accordance with Article 32.