Oversight by the management body of the institutions

When overseeing the application of the principles referred to above as well as the application of limits set out in accordance with the principal approach in Section 5, the institution’s management body should, on a regular predetermined basis:

• a. review and approve the institution’s risk appetite to exposures to shadow banking entities and the aggregate and individual limits set in line with Section 5;
• b. review and approve the risk management process to manage exposures to shadow banking entities, including analysis of risks arising from those exposures, risk mitigation techniques and potential impact on the institution under stressed scenarios;
• c. review the institution’s exposures to shadow banking entities (on an aggregate and individual basis) as a percentage of total exposures and expected and incurred losses;
• d. ensure the setting of the limits referred to in these guidelines is documented, including any changes to them.

The institution’s management body may delegate the reviews set out in paragraph 15 a) to d) to senior management.