Management reporting
Article 15
When assessing the adequacy of the management reporting as referred to in Article 189 of Regulation (EU) No 575/2013, competent authorities shall verify that: (a) the management reporting includes information about all of the following: (i) the risk profile of the obligors or exposures, by grade; (ii) the migration across grades; (iii) an estimation of the relevant risk parameters per grade; (iv) a comparison of realised default rates, and, where own estimates are used, of realised LGDs and realised conversion factors against expectations; (v) stress test assumptions and results; (vi) the performance of the rating process, areas needing improvement and the status of efforts to improve previously identified deficiencies of the rating systems; (vii) validation reports; (b) the form and the frequency of management reporting are adequate having regard to the significance and the type of the information and to the level the recipient occupies in the hierarchy, taking into account the institution’s organisational structure; (c) the management reporting facilitates the senior management’s monitoring of the credit risk in the overall portfolio of exposures covered by the IRB Approach; (d) the management reporting is proportionate to the nature, size, and degree of complexity of the institution’s business and organisational structure.