18.2 RMF’s role in material changes

Before decisions on material changes to processes or systems or exceptional transactions are taken, the RMF should be involved in the evaluation of the impact of such changes and exceptional transactions on the investment firm ’s and group’s overall risk , and should report its findings directly to the management body before a decision is taken.

The RMF should evaluate how the risks identified could affect the investment firm ’s or group’s ability to manage its risk profile, liquidity and its sound capital base under normal and adverse circumstances.