An Authorised Firm must implement and maintain appropriate risk management systems to identify, manage, monitor and, where applicable, control all risks in relation to a securitisation transaction whether the firm is an investor, Originator or Sponsor. In particular, such risk management systems should effectively address the following risks:
(a) the liquidity and capital implications that may arise from the items returning to the balance sheet;
(b) the Operational Risks that may arise under a securitisation; and
(c) reputational risks that may arise as a result of its securitisation activities.
Derived from RM111/2012
(Made 15th October 2012). [VER20/12-12]