exposure
- (1) (in relation to a firm but subject to (2) and (3)) the maximum loss which the firm might suffer if:34
- (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) and BIPRU 9 (Securitisation) an asset or off-balance sheet item.34
- (3) (for the purposes of BIPRU 10 (Concentration risk requirements)) has the meaning in BIPRU 10.2 (Identification of exposures.).34