6.6 Internal Controls Assessment
Effective from 3/4/2025The SCF should assess internal controls related to SNC risk to ascertain their design and operational effectiveness. The assessment should, among others, cover the following aspects:
| a. | scope and adequacy of the control design in relation to addressing the SNC risk, |
| b. | operational reliability of the control and its effectiveness in identifying exceptions across all possible scenarios that could arise, |
| c. | probability of avoiding or circumventing the control, and |
| d. | comprehensiveness of the existing controls to address all relevant SNC risk. |