The recursive testing helps to improve the methodology. All these procedures will help the bank to effectively control market risk and be able to allocate the necessary capital.
Risk management is effective when senior management is actively involved and continuous informed of the risk department actions, department that must be independent and able to establish work rules and procedures so that the system to be operational.
The targeted objectives are a better risk management, continuous development of processes and encouraging innovation. The cope is to complete the integration process of risk management and capital with bank policies.