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exposure

      1. (1) (in relation to a firm but subject to (2) and (3)) the maximum loss which the firm might suffer if:34
        1. (a) a counterparty or a group of connected counterparties fail to meet their obligations; or34
        1. (b) it realises assets or off-balance sheet positions34
      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) and BIPRU 9 (Securitisation) an asset or off-balance sheet item.34
      1. (3) (for the purposes of BIPRU 10 (Concentration risk requirements)) has the meaning in BIPRU 10.2 (Identification of exposures.).34