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exposure

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      1. (1) (in relation to a firm but subject to (2) and 101(6)101) the maximum loss which the firm might suffer if:
        1. (a) a counterparty or a group of connected counterparties fail to meet their obligations; or
        1. (b) it realises assets or off-balance sheet positions
      1. (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.
      1. (3) [delete]
      1. (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.
      1. (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).
      1. (6) (in MIPRU) an asset or liability.101