08-Internal Capital Adequacy Assessment Process (ICAAP) - METAC
08-Internal Capital Adequacy Assessment Process (ICAAP) - METAC
08-Internal Capital Adequacy Assessment Process (ICAAP) - METAC
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WHAT IS THE OVERALL PROCESS <br />
Credit risk<br />
Settlement risk<br />
Residual risk<br />
Other risks associated<br />
with securitisation and<br />
concentration risk<br />
Correlation and<br />
diversification<br />
Key:<br />
Market risk<br />
Operational<br />
risk<br />
Interest rate risk<br />
arising from nontrading<br />
activities<br />
Liquidity risk<br />
Economic and<br />
regulatory<br />
environment<br />
<strong>Internal</strong><br />
capital<br />
Forward capital<br />
planning<br />
•Business risks<br />
(earnings and costs)<br />
•Strategy<br />
•Stress test<br />
Peer group<br />
Comparison<br />
Supervisory<br />
outcomes<br />
Prudential measures<br />
-<strong>Capital</strong> adjustment<br />
-Provisioning<br />
-Systems & controls<br />
- Business restrictions<br />
-Reduction of inherent risk<br />
Block 1 Block 2 & 3 Block 4<br />
11<br />
11
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