PRU 4.15.13

An Authorised Person intending to utilise any of the provisions contained in Section 4.13 (CRM) for the purposes of reducing Exposure values should have in place policies and procedures addressing the following:

(a) risks arising from Maturity Mismatches between Exposures and any credit protection on those Exposures;
(b) the Concentration Risk arising from the application of CRM techniques, including indirect Large Exposures — for example to a single Issuer of Securities taken as Collateral; and
(c) the conduct of stress testing on CRM taken as Collateral.