PD-1.3.7
The following information relating to the bank's risk management strategies and practices should be included in the Annual Report:
(a) discussion of the overall risk management philosophy, overall policy and methodologies, the nature of risks in activities and how risks arise in those activities, how (in high level terms) these risks are managed and controlled; and
(b) discussion of risk measurement and monitoring processes, the use of risk-mitigating tools (collateral , guarantees, credit insurance, netting agreements, managing concentrations, credit derivatives ), limits (e.g., credit limits, market risk limits), and periodic review of exposures .