http://www.legislation.gov.uk/eur/2014/528/article/7Commission Delegated Regulation (EU) No 528/2014 of 12 March 2014 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for non-delta risk of options in the standardised market risk approach (Text with EEA relevance)Commission Delegated Regulation (EU) No 528/2014Commission Delegated Regulation (EU) No 528/2014 of 12 March 2014 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for non-delta risk of options in the standardised market risk approach (Text with EEA relevance)King's Printer of Acts of Parliamenthttps://webarchive.nationalarchives.gov.uk/eu-exit/https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:02014R0528-20160602texttext/xmlen2023-12-08Expert Participation2023-07-11 Conditions of application of the scenario approach Article 7 Institutions may use the scenario approach where they fulfil all of the following requirements: they have established a risk control unit that monitors the risk of the options portfolio of the institutions and reports the results to the management; they have notified competent authorities of a predefined scope of exposures to be covered by this approach consistently over time; they integrate the results of the scenario approach in the internal reporting to the management of the institution. For the purposes of point (b), institutions shall define the precise positions that are subject to the scenario approach, including the type of product or identified desk and portfolio, the distinctive risk management approach that applies to such positions, the dedicated IT application that applies to such positions, and a justification for the allocation of those positions to the scenario approach, with regard to those positions allocated to other approaches. Substituted by Corrigendum to Commission Delegated Regulation (EU) No 528/2014 of 12 March 2014 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for non-delta risk of options in the standardised market risk approach (Official Journal of the European Union L 148 of 20 May 2014).