143. When identifying and measuring or assessing risks, an investment firm should develop …

When identifying and measuring or assessing risks, an investment firm should develop appropriate methodologies including both forward-looking and backward-looking tools. The tools should include the assessment of the actual risk profile against the investment firm ’s risk appetite, as well as the identification and assessment of potential and stressed risk exposures under a range of assumed adverse circumstances against the investment firm’s risk capacity . The tools should provide information on any adjustment to the risk profile that may be required. Investment firms should make appropriately conservative assumptions when building stressed scenarios.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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