Undertakings applying the matching or volatility adjustment must keep a liquidity plan projecting cash in- and outflows for the affected assets and liabilities. All undertakings must regularly assess the sensitivity of technical provisions and eligible own funds to the extrapolation assumptions of the risk-free curve and, where used, to the matching adjustment assumptions (including the fundamental spread, forced sales and portfolio composition) and the volatility adjustment, including the effect of reducing either to zero; these assessments go to the supervisor annually, with an analysis of recovery measures if a zero adjustment would breach the SCR. Where the volatility adjustment is used, the risk-management policy must state criteria for its application.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.