PD-1.3.10
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
The following information relating to other risks should be included in the bank's Annual Report:
(a) Quantitative information about investments in foreign subsidiaries (as included in the Financial Statements Section and representing foreign currency translation risk) supplemented by a discussion about:
(i) The nature of the related currency exposure ,
(ii) How that exposure has changed from year to year,
(iii) Foreign exchange translation effects thereon,
(iv) The earnings impact of foreign exchange transactions, and
(v) The effectiveness of risk management (hedging ) strategies;
(b) Qualitative information about the main types of operational risks including any specific problem that is considered to be individually significant, and how the bank manages and controls such risk;
(c) Quantitative information on any material legal contingencies, including pending legal actions, and a discussion and estimate of the potential liabilities, in addition to qualitative information about how the bank manages and controls such risks.
October 07