The SCF should develop a sampling methodology that will be followed during the review exercise. The sample size and the sampling procedure should be objective and robust to ascertain with a high level of confidence that the selected sample fairly represents transactions executed during the period that is covered by the review exercise.
b.
The SCF should determine the sampling methodology which provides clarity related to the minimum quantity of samples that may be reviewed (such as 10% sample size) of the total number of transactions subject to the review exercise. Appendix (B) contains generic guidance for developing the sampling methodology.
c.
The SCF may need to select a larger or additional sample size than what was initially planned if the circumstances arise, such as in cases where there is reasonable uncertainty on whether an identified SNC incident/s is a random or systemic failure of the IFI to comply with the regulatory requirements and ISSC Resolutions. These instances should be specified in the IFI’s sampling methodology.