Activity
Establish entity specific controls
Establish control activities ICS ERM
Description
Comment
"Because each entity has its own set of objectives and implementation approaches, there will be differences in risk responses and related control activities. Even if two entities had identical objectives and made similar decisions on how they should be achieved, their control activities would likely be different. Each entity is managed by different people who use individual judgments in effecting internal control. Moreover, controls reflect the environment and industry in which an entity operates, as well as the complexity of its organization, its history and its culture."
COSO
Organisation
Responsible
Risk officers
Consulted
Middle Management
Input/Output
Input data
Entity objectives
Risk strategy
Output data
Control activities
Process documentation
Requirements
Requirements (Basel II)
Standardised Approach (OR)
Equities disclosure
Market risk disclosure
Capital structure disclosure
Trading Book Issues
Assessment of capital adequacy
Assessment of the control environment
Internal Ratings Based Approach
Principle 1: Banks should have a process for assessing their overall capital adequacy
Principle 3
Operational risk disclosure
Comprehensive assessment of risks
Internal control review
Supervisory response
Principle 2: Supervisors should review and evaluate banks’ internal capital adequacy
Capital adequacy disclosure
Estimations of probability of default (PD)
Supervisory review of compliance with minimum standards
Data warehousing
General qualitative disclosure requirement
Credit risk disclosure
Review of adequacy of risk assessment
Standardised Approach (CR)
Data analysis
Estimations of loss given default (LGD)
Estimations of exposure at default (EAD)
Interest rate risk in the banking book disclosure
Monitoring and reporting
Board and senior management oversight
Principle 4
All Basel II requirements
Data collection
Advanced Measurement Approach
Data quality
Basic Indicator Approach
Credit Risk – Securitisation Framework
Sound capital assessment
Requirements (SOX)
Section 1001: Sense of the Senate Regarding the Signing of Corporate Tax Returns by Chief Executive Officers.
Section 1102: Tampering With a Record or Otherwise Impeding an Official Proceeding
Section 403: Disclosures Of Transactions Involving Management And Principal Stockholders.
Section 404: Management Assessment Of Internal Controls
Section 409: Real Time Issuer Disclosures
Section 302: Corporate Responsibility For Financial Reports
Section 906. Corporate responsibility for financial reports
Section 802: Criminal penalties for altering documents
Requirements (MIFID)
Article 26 Monitoring of compliance with the rules of the MTF and with other
Article 6 Compliance
Article 7 Risk management
Article 12 Personal transactions
Article 21 Obligation to execute orders on terms most favourable to the client
Article 20 Reports by external auditors
Article 5 General organisational requirements
Article 9 Responsibility of senior management
Article 10 Complaints handling
Article 8 Internal audit
Article 14 Trading process and finalisation of transactions in an MTF
Article 22 Client order handling rules
Article 13 Organisational requirements