Audit group should skate the adequate and effective process and must exist for the following:
1. Risk pricing models and valuation systems used by front and back office personnel.
2. Documenting the risk management systems and processes.
3. Validating any significant change in the risk measurement process.
4. Ensuring the integrity of the risk management information system.
5. Capturing position data and ensuring that any positions that are not captured do not materially affect risk reporting.
6. Verify the consistency, timeliness, and reliability of data sources used to run internal models, and that the data sources are independent.
7. Ensuring the accuracy and appropriateness of volatility and correlation assumptions.
8. Ensuring the accuracy of valuation and Risk transformation calculations.
9. Verifying the model's accuracy through frequent back-testing.
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