INMA S1.4.4 Group risk

(1) Group risk is the risk of loss resulting from membership of a corporate group or linkages with related parties. Related parties includes not only other members of a firm’s corporate group but individuals who are in a position to exercise significant influence over it.
(2) Corporate group membership and linkages with related parties can be a source of both strength and weakness.
(3) If an INMA firm is likely to be exposed to group risk it should include, in its risk management policy, processes and procedures for identifying, assessing, managing and mitigating that risk.
Derived from QFCRA RM/2014-4 (as from 1st January 2015).