# Commission Delegated Regulation (EU) 2018/959 of 14 March 2018 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards of the specification of the assessment methodology under which competent authorities permit institutions to use Advanced Measurement Approaches for operational risk (Text with EEA relevance), Article 35: Consistency of the operational risk measurement system

Extent: E+W+S+N.I.

Competent authorities shall assess an institution's standards relating to the internal consistency of the operational risk measurement system, as referred to in point (e) of Article 322(2) of Regulation (EU) No 575/2013, by confirming at least the following:
(a) that the institution's capital allocation mechanism is consistent with the institution's risk profile and with the overall design of the operational risk measurement system;
(b) that allocation of the AMA own funds requirements takes into account potential internal differences in risk and quality of operational risk management and internal control between the parts of the group to which the AMA own funds requirements are allocated;
(c) that there is no observable current or foreseen practical or legal impediment to the prompt transfer of own funds or repayment of liabilities;
(d) that the allocation of the AMA own funds requirements from the consolidated group level downwards to the parts of the group involved in the operational risk measurement system relies on sound and to, the maximum extent, risk sensitive methodologies.

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Source: https://www.legislation.gov.uk/eur/2018/959/article/35 (the official version)
Page: https://openlegislation.uk/eu-regulation-2018-959/article-35
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.