(4)A key step in the assessment of whether risk factors are modellable is assessing the representativeness of identified verifiable prices for those risk factors. A verifiable price should be considered representative of a risk factor of an institution where the institution is able to extract the value of the risk factor from the value of the verifiable price using commonly used quantitative methodologies. A number of those methodologies need additional input data in order for institutions to be able to extract the value of a risk factor, making it more complex to demonstrate the representativeness of the verifiable prices. Therefore, those methodologies, as well as the additional input data, where needed, should be based on objective and properly documented information, thus preventing institutions from using unsound assumptions. Due to their lack of verifiability and representativeness, in line with international standards, collateral reconciliations or valuations should not be considered eligible sources of verifiable prices.