Reports and recommendations from model monitoring are approved by the Head of the Risk Department.
Reports and recommendations of the Model Validation Bureau are approved by the Validation Committee.
The Chairman of the Validation Committee is obligated to submit to the Risk Committee and, if necessary, to other committees responsible for controlling credit risk, requests from the Validation Committee regarding all the credit risk models and rating systems and the implementation status of corrective action, if any.
The Bank stores the documentation of implemented models, rating systems, monitoring and validation reports and the methodologies used to prepare monitoring and validation reports; minutes on decisions made by the Validation Committee and the Risk Committee.
In addition, the Internal Audit Department shall review rating systems according to the annual Audit Plans approved by the Supervisory Board. These include the credit area, in particular issues of risk parameters estimation: PD, LGD, CCF and expected loss EL. The reviews are carried out based on the Audit Charter and the Audit Manual approved by the Audit Committee of the Supervisory Board. Research is carried out on the basis of specialist audit programs.