CP13/6 - CRD IV for Investment Firms - Financial Conduct Authority

FCA 2013/xx
(a)
(b)
(c)
the nature and level of the risks to which it is, or might be,
exposed;
the risk in the overall financial adequacy rule;
the risk that the firm might not be able to meet the obligations
in Part Three of the EU CRR (Capital Requirements) in the
future; and
(2) that enable it to identify and manage the major sources of risks referred
to in (1), including the major sources of risk in each of the following
categories where they are relevant to the firm given the nature and
scale of its business:
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
credit and counterparty risk;
market risk;
liquidity risk;
operational risk;
concentration risk;
residual risk;
securitisation risk;
business risk;
interest rate risk, including interest-rate risk in the non-trading
book;
risk of excessive leverage;
pension obligation risk; and
group risk.
[Note: article 73 first paragraph and article 74(1) of CRD]
2.2.8 R (1) This rule defines some of the terms used in the overall Pillar 2 rule.
(2) Residual risk means the risk that credit risk mitigation techniques used
by the firm prove less effective than expected.
(3) Securitisation risk includes the risk that the own funds held by a firm
for assets which it has securitised are inadequate having regard to the
economic substance of the transaction, including the degree of risk
transfer achieved.
(4) Business risk means any risk to a firm arising from:
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