1. Participating insurance and reinsurance undertakings, insurance holding companies or mixed financial holding companies shall consider risk concentrations that could threaten the group solvency or liquidity position as significant risk concentrations.

2. For the purposes of identifying significant risk concentrations, participating insurance and reinsurance undertakings, insurance holding companies or mixed financial holding companies shall consider, at least, direct and indirect exposures of undertakings in the group to all of the following:

(a) individual counterparties;

(b) groups of individual but interconnected counterparties, for example undertakings within the same corporate group;

(c) specific geographical areas or industry sectors;

(d) natural disasters or catastrophes.

3. When determining appropriate thresholds in a particular group for significant risk concentrations to be reported, the group supervisor shall consider the following elements:

(a) the solvency and liquidity position of the group;

(b) the complexity of the structure of the group;

(c) the importance of regulated entities from other financial sectors or non-regulated entities carrying out financial activities;

(d) the diversification of the group's investments portfolio;