Identification of Additional Risks
CM-2.3.40
It is conceivable that the
licensee may consider multiple third parties to be potential drivers of additional risk. In this case, thelicensee should assign the exposure resulting from theinvestment in the relevant structures to each of the third parties.Added: June 2022CM-2.3.41
The requirement set out in Paragraph CM-2.3.36 to recognise a structural risk inherent in the structure instead of the risk stemming from the underlying exposures is independent of whatever the general assessment of additional risks concludes.
Added: June 2022