The Supervisory Board oversees Scope Ratings AG's executive board and appoints its members. Members of the supervisory board may generally not be involved in the day-to-day management of Scope Ratings AG. The supervisory board comprises of reputable individuals with a wide spectrum of experiences and expertise, including its independent members. The independent members of the supervisory board are, under European Regulation (EC) No. 1060/2009 as amended by Regulation (EU) No. 513/2013 and Regulation (EU) No. 462/2013, specifically responsible for monitoring the development of the credit rating policy and the credit rating methodologies, the effectiveness of the internal quality control system, the effectiveness of measures and procedures to identify, eliminate, manage and/or disclose conflicts of interest and the compliance and governance processes.
Scope maintains a permanent and effective compliance function, which operates independently. Its role is to advise the credit rating agency and its employees and managers on regulatory requirements, Scope's code(s) of conduct, its policies and internal procedures and to monitor adherence to those rules. The Chief Compliance Officer reports directly to the CEO of Scope Ratings AG and the independent members of the Supervisory Board.
Scope has established a Review Function responsible for periodically reviewing methodologies, models and key rating assumptions. The Review Function also manages necessary changes or modifications thereto and assesses their appropriateness. The Review Function operates independently from both the business lines, which are responsible for credit rating activities, and the Business Development and Commercial department. It reports to the members of the Administrative and Supervisory Board and to the CEO.