PD-1.3.7
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
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 .
October 07