(1) A fund administrator shall have in place, and document in writing, sound, effective and comprehensive strategies, processes and systems to -
(a) assess and maintain on an on-going basis the amounts, types and distribution of own funds that are adequate to cover the nature and level of the risks to which it is or might be exposed, and
(b) enable it to identify and manage the sources of risk referred to in subparagraph (a) including the major sources of risk in each of the following categories where they are relevant to the fund administrator:
(i) credit and counterparty risk;
(ii) concentration risk;
(iii) market risk;
(iv) operational risk;
(v) liquidity risk;
(vi) strategy or business model risk;
(viii) environmental risk;
(ix) governance risk.
(2) A fund administrator shall have in place, for each of the major sources of risk listed in paragraph (1)(b), written policies and procedures to identify, measure and manage that source of risk.
(3) With reference t