1. Competent authorities shall ensure that investment firms have robust strategies, policies, processes and systems for the identification, measurement, management and monitoring of the following:

(a) material sources and effects of risk to clients and any material impact on own funds;

(b) material sources and effects of risk to market and any material impact on own funds;

(c) material sources and effects of risk to the investment firm, in particular those which can deplete the level of own funds available;

(d) liquidity risk over an appropriate set of time horizons, including intra-day, so as to ensure that the investment firm maintains adequate levels of liquid resources, including in respect of addressing material sources of risks under points (a), (b) and (c);

(e) material sources and effects of concentration risk arising from exposures towards central counterparties and any material impact on own funds.

 The strategies, policies, processes and systems shall be proportionate to the complexity, risk profile, and scope of operation of the investment firm and risk tolerance set by the management body, and shall reflect the investment firm's importance in each Member State in which it carries out business.