Supervisory Review and Evaluation Process (SREP)
4. The documented results of IRAP and ICAAP assessments are required to be submitted to the Regulator. The Regulator then applies a process known as the SREP as detailed in Section 10.5. As part of the SREP, the Regulator will evaluate the quality, completeness and consistency of the IRAP and, where applicable, the ICAAP of the Authorised Person, to form a view on the overall risk profile of the firm and whether the capital held by the firm is sufficient to deal with the risks. More detail concerning the SREP is provided in App11.
5. Following review of the IRAP and ICAAP of an Authorised Person, the Regulator may engage in a dialogue with the firm to evaluate the assessment of risks and where relevant, additional capital which the Regulator considers that the firm should hold resulting from the IRAP, ICAAP or SREP.