Guidance

The Regulator expects the systems and controls to include:

a. processes for the tiered approval of Exposures based on size, risk profile and complexity;
b. mechanisms for identifying, recording and monitoring all Exposures with particular focus on Large Exposures;
c. mechanisms in place for the monitoring and control of Exposures to Counterparties and Groups of Connected Counterparties;
d. mechanisms for monitoring and recording Exposures within its Group;
e. mechanisms to monitor Counterparties in the same economic sector and exposed to single economic risks;
f. mechanisms to identify and control risks arising from single geographic jurisdictions; and
g. mechanisms to identify risks arising from related activities or commodities.