(a) How, with particular reference to its activities, the licensee defines and measures credit risk;

(b) The types and sources of counterparty risk to which the licensee wishes to be exposed (and the limits on that exposure) and those to which the investment firm licensee wishes not to be exposed (and how that is to be achieved, for example how exposure is to be avoided or mitigated); and

(c) The level of diversification required by the licensee and the licensee's tolerance for risk concentrations (and the limits on those exposures and concentrations).