Capital assessment should be:
- Demonstrably driven by the key business risks within the business plan and risk framework (ie the risk register, risk and control assessment and risk profile).
- Expressed in terms of risk categories which are aligned to the business and consider all FSA risk groups.
- Transparent, in explaining how the key risks contribute to the ICA value.
- An integral part of normal risk management processes, ie meaningfully tied to the ongoing processes for identification, measurement, monitoring, assessment and management of risk, in use throughout the franchisee business.
