Operational plan
The NPE strategy of the credit institution should be supported by an operational plan, which should be defined, approved and reviewed by the management body. The operational plan should clearly define how the credit institution will operationally implement its NPE strategy over a time horizon of at least one to three years (depending on the type of operational measures required).
The NPE operational plan should contain at least:
a) clear time-bound objectives and goals;
b) activities to be carried out on a portfolio basis;
c) governance arrangements and structures, including responsibilities and reporting mechanisms for activities and outcomes;
d) quality standards to ensure successful outcomes;
e) staffing and resource requirements;
f) required technical infrastructure and an enhancement plan; g) granular and consolidated budget requirements for the implementation of the NPE strategy;
h) plans for communication with internal and external stakeholders (e.g. with regard to sales, servicing, efficiency initiatives).
The operational plan should have a specific focus on internal factors that could present impediments to the successful delivery of the NPE strategy.