4. The calculation of the global exposure represents only one element of the UCITS overall risk management process ("RMP"). The RMP should comprise procedures which enable the responsible person to assess the UCITS exposure to all material risks including market risks, liquidity risks, counterparty risks and operational risks.
5. The responsible person should assess the investment strategy and portfolio composition of the relevant UCITS on an on-going basis to establish where an intra-day calculation may be required. This may be necessary, for example, on a particular day due to increased volatility or might be required more frequently.
6. A responsible person should use an advanced risk measurement methodology (supported by a stress testing program) such as the Value-at-Risk (VaR) approach to calculate global exposure where:
(a) it engages in complex investment strategies which represent more than a negligible part of the UCITS' investment policy;
(b) it has more than a negligible exp
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