TITLE VIIPRUDENTIAL SUPERVISION

CHAPTER 2 Review Processes

Section II Arrangements, processes and mechanisms of institutions

Sub-Section 2 Technical criteria concerning the organisation and treatment of risks

Article 81Concentration risk

Competent authorities shall ensure that the concentration risk arising from 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, the application of credit risk mitigation techniques, and including in particular risks associated with large indirect credit exposures such as a single collateral issuer, is addressed and controlled including by means of written policies and procedures.