An Authorised Firm intending to utilise any of the provisions contained in
[PIB section 4.13] (Credit Risk mitigation) for the purposes of reducing Exposure values should have in place policies and procedures addressing the following:
(a) risks arising from maturity mismatches between Exposures and any credit protection on those Exposures;
(b) the Concentration Risk arising from the application of Credit Risk mitigation techniques, including indirect Large Exposures — for example to a single Issuer of Securities taken as Collateral; and
(c) the conduct of stress testing on Credit Risk mitigation taken as Collateral.
Derived from RM111/2012
(Made 15th October 2012). [VER20/12-12]