dependency)

In the following scenario, the reporting institution has exposures to all entities shown in the diagram below. A controls A¹ and A² , B controls B¹ . Furthermore, B¹ is economically dependent on A² (one-way dependency):

Grouping requirement: In this scenario, the reporting institution should come to the conclusion that B¹ is in any case to be included in the group of connected clients of A (the group thus consisting of A, A¹ , A² and B¹ ) as well as of B (the group thus consisting of B and B¹ ):

In case of financial problems for A, A² and ultimately B¹ will also experience financial difficulties on account of their legal (A² ) and economic (B¹ ) dependency respectively. The forming of three different groups (A + A¹ + A² , A² + B¹ , B + B¹ ) would not be sufficient to capture the risk stemming from A, because B¹ , although dependent on A² and thus on A itself, would be carved out of the single risk of group A.

Scenario C/E 2: Combined occurrence of control and economic dependency (two-way

1. Vue d’ensemble

1.1 Références

1.2 Exigences identifiées

1.3 Normes associées

2. Exigences identifiées

3. Normes associées

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