(4)Extensions and changes to the use of alternative internal models, or changes to the subset of the modellable risk factors, should be classified as ‘material’, and thus as requiring prior permission by competent authorities, or ‘non-material’ and thus requiring notification to competent authorities, on the basis of both qualitative and quantitative criteria. Some extensions and changes, including organisational changes, internal process changes, or risk management process changes, may not have a direct quantitative impact on the alternative internal models, but may influence the accuracy, soundness and use of the that alternative internal model. In those cases, given the difficulty of determining a quantitative impact, institutions and competent authorities should use only the qualitative criteria for the assessment of the materiality of those changes.