Concentration Risk | Prudential Regulation Authority Handbook & Rulebook
Prudential Regulation Authority Rulebook

Prudential Regulation Authority Rulebook

Part

Internal Capital Adequacy Assessment

Chapter

Concentration Risk

Printed on: 11/06/2025

Rulebook at: 18/04/2024


6

Concentration Risk

6.1

A firm must address and control, by means which include written policies and procedures, the concentration risk arising from:

  1. (1) exposures to each counterparty including central counterparties, groups of connected counterparties and counterparties in the same economic sector, geographic region or from the same activity or commodity;
  2. (2) the application of credit risk mitigation techniques; and
  3. (3) risks associated with large indirect credit exposures such as a single collateral issuer.

[Note: Art 81 of CRD]

  • 01/01/2014