Prudential Regulation Authority Rulebook

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]