(a) Decline in net profit margin — this estimates the impact on the bank's net profit margin due to negative financing growth or displaced commercial risk;

(b) Risk concentrations — this estimates the impact from changes in market conditions which could give rise to risk concentrations. Banks may identify and assess the impact of heightened correlations or hidden inter-dependencies within and across risk types / risk factors, and possible second-round effects under severe market shocks that may lead to an increase in bank's exposures; and

(c) Operational risk events — this assesses the effects, on a bank's capital requirement for operational risk or its ability to maintain critical operations and earning capabilities, of external events (e.g. external fraud, vendor failure, utility outage and service disruption) or internal events (e.g. internal fraud, business disruption or system failures, telecommunication problems and loss of key personnel).