Activity
Implement internal controls
Establish control activities ICS ERM
Organisation
Responsible
Middle Management
Input/Output
Input data
Control activities
Process documentation
Requirements
Requirements (Basel II)
Basic Indicator Approach
Capital adequacy disclosure
Standardised Approach (CR)
Monitoring and reporting
Credit risk disclosure
Estimations of probability of default (PD)
Supervisory review of compliance with minimum standards
Internal control review
Data collection
Estimations of exposure at default (EAD)
Data analysis
Data warehousing
General qualitative disclosure requirement
Operational risk disclosure
Principle 4
All Basel II requirements
Internal Ratings Based Approach
Assessment of the control environment
Capital structure disclosure
Advanced Measurement Approach
Board and senior management oversight
Estimations of loss given default (LGD)
Equities disclosure
Principle 3
Assessment of capital adequacy
Market risk disclosure
Interest rate risk in the banking book disclosure
Comprehensive assessment of risks
Review of adequacy of risk assessment
Standardised Approach (OR)
Data quality
Supervisory response
Credit Risk – Securitisation Framework
Trading Book Issues
Principle 1: Banks should have a process for assessing their overall capital adequacy
Sound capital assessment
Principle 2: Supervisors should review and evaluate banks’ internal capital adequacy
Requirements (SOX)
Section 802: Criminal penalties for altering documents
Section 404: Management Assessment Of Internal Controls
Section 403: Disclosures Of Transactions Involving Management And Principal Stockholders.
Section 1001: Sense of the Senate Regarding the Signing of Corporate Tax Returns by Chief Executive Officers.
Section 302: Corporate Responsibility For Financial Reports
Section 906. Corporate responsibility for financial reports
Section 409: Real Time Issuer Disclosures
Section 1102: Tampering With a Record or Otherwise Impeding an Official Proceeding
Requirements (MIFID)
Article 13 Organisational requirements
Article 20 Reports by external auditors
Article 9 Responsibility of senior management
Article 22 Client order handling rules
Article 7 Risk management
Article 5 General organisational requirements
Article 10 Complaints handling
Article 26 Monitoring of compliance with the rules of the MTF and with other
Article 12 Personal transactions
Article 14 Trading process and finalisation of transactions in an MTF
Article 8 Internal audit
Article 6 Compliance
Article 21 Obligation to execute orders on terms most favourable to the client