Assurance Layer
Governance and Assurance
Clarify how the board, senior management, validation, and audit interact with the ICAAP process.
Use test and decision integration
Board review and challenge
Model risk and validation
Documentation and assurance
Governance objective
This layer shows how ICAAP becomes a management process rather than a static report. It should capture challenge, approval, escalation, and evidence retention.
What assurance should cover
- completeness of the risk universe
- appropriateness of methodology choices
- traceability of assumptions and overlays
- consistency between narrative, calculations, and board papers
Mature-state evidence
The strongest implementations retain clear challenge logs, decision papers, validation conclusions, and a mapped audit trail for key judgments.
Next actions
Translate the framework into institution-specific policies and evidence packs.
Link methodology choices to ICAAP governance forums, MI, and challenge records.
Document management overlays and validation judgments explicitly.