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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Laws
Rulebook Modules
Prudential — Investment, Insurance Intermediation and Banking Module (PIB) [VER33/02-19]
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Consultation Papers
Policy Statements
DFSA Codes of Practice
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Financial Markets Tribunal
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  Versions
(1 version)
 
Dec 9 2012 onwards

PIB 4.3.3

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The definitive version of DFSA handbook text is the PDF version as that is the text of the instrument as made and published by the DFSA.

To view past versions of this module in PDF format, please visit the Archive.

(1) An Authorised FirmG must ensure that its Governing BodyG retains responsibility for the Credit RiskG management framework and ensure it is appropriate for the nature, scale and complexity of operations, in the context of prevailing market and macro-economic conditions.
(2) An Authorised FirmG must ensure that its senior management or an appropriate designated body, regularly reviews and understands the implications as well as the limitations of the risk management information that they receive from the Credit RiskG management function, in order to evaluate the suitability and effectiveness of such information in enabling them to provide effective oversight over the Credit RiskG management function.
(3) An Authorised FirmG must ensure that its Governing BodyG regularly reviews and understands the implications as well as the limitations of Credit RiskG management information and reports presented to it, to ensure that the contents and the format of such reports are suitable for effective Governing BodyG oversight.
(4) An Authorised FirmG must ensure that its Governing BodyG is responsible for carrying out regular stress testing on the credit portfolio which is appropriate for the nature, scale and complexity of the Credit RisksG assumed by the Authorised FirmG . An Authorised FirmG must ensure that its Governing BodyG annually reviews the stress scenarios and takes action to address any perceived issues arising from those reviews.
(5) An Authorised FirmG must establish and enforce internal controls and practices so that deviations from policies, procedures, limits and prudential guidelines are promptly reported to the appropriate level of management.
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]