- (1) (in relation to a firm but subject to (2) and 101(6)101) the maximum loss which the firm might suffer if:
- (a) a counterparty or a group of connected counterparties fail to meet their obligations; or
- (b) it realises assets or off-balance sheet positions
- (2) (in accordance with Article 77 of the Banking Consolidation Directive and for the purposes of the calculation of the credit risk capital component and the counterparty risk capital component (including BIPRU 3 (Standardised credit risk), BIPRU 4 (The IRB approach), BIPRU 5 (Credit risk mitigation)75,75 BIPRU 9 (Securitisation)101 an asset or off-balance sheet item.
- (3) [delete]
- (4) (in IFPRU and to calculate own funds requirements under Part Three Title II ( credit risk and counterparty credit risk)) has the meaning in article 5(1) of the EU CRR.
- (5) (in IFPRU 8.2 (Large exposures) for the purpose of Part Four ((Large exposures) of the EU CRR) has the meaning in article 389 of the EU CRR (Large exposures: definitions).