BANK 5.2.2 Guidance

A banking business firm's policies should be flexible to help the firm to identify risk concentrations. To achieve this, the systems should be capable of analysing the firm's credit portfolio by:

•   size of exposure
•   exposure to connected counterparties
•   product
•   geography
•   industry or sector (for example, manufacturing and industrial)
•   account performance
•   internal credit risk assessment
•   funding
•   outstandings versus commitments
•   types and coverage of collateral.
Derived from QFCRA RM/2014-2 (as from 1st January 2015).