Risk Concentration
What is Risk Concentration?
The accumulation of exposure to a single risk factor, counterparty, or geographic area that could result in significant losses.
Frameworks that govern risk concentration
What the standards actually require on risk concentration
Requirements naming risk concentration across 5 standards, quoted from the control text.
Sets the minimum standards and the HKMA's supervisory powers on large exposures and risk concentrations under the Banking (Exposure Limits) Rules: the forms of concentration, the statutory limitations (the BELR summary, the Part 7 definition of exposure, credi...
hkma-spm::CR-G-8 · CR-G-8 Large Exposures and Risk Concentrations →The head of the group must report significant risk concentrations at group level and all significant intra-group transactions (including with natural persons closely linked to the group) at least annually, and very significant transactions as soon as practicab...
solvency-ii::Art.244-245 · Arts 244, 245 Report significant risk concentrations and intra-group transactions to the group supervisor →Reports cover all material risk areas with depth and scope proportionate to the bank's size, complexity and risk profile and to recipients' needs: exposure and position information for all significant risk areas (credit, market, liquidity, operational) and the...
bcbs-239::P8 · Principle 8: comprehensiveness of risk reports →The bank must have a firm-wide risk management framework, proportionate to its size and complexity, that defines risk appetite and captures all material risks including concentrations, securitisation, off-balance sheet exposures and valuation, with ongoing str...
basel-iii-international-banking-framework::SRP30 · Maintain a firm-wide risk management framework with stress testing, concentration, reputational and valuation controls →Disclosures about reasonably foreseeable and material insurance risk exposures and their management must cover the nature, scale and complexity of risks arising from insurance contracts, the risk management objectives and policies, the models and techniques us...
iais-insurance-core-principles-icps::20.6 · 20.6 Insurance risk exposure: nature of risks, objectives and policies, models and underwriting, reinsurance, concentrations →Questions people ask about risk concentration
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