(1) The trustees of a scheme or trust RAC shall establish and maintain an effective risk management function which shall comply with this section.
(2) For the purposes of subsection (1), the trustees referred to in that subsection shall establish and maintain the risk management function in a manner that is proportionate to -
(a) the size of that scheme or trust RAC and its internal organisation, and
(b) the size, nature, scale and complexity of the activities of that scheme or trust RAC.
(3) The trustees referred to in subsection (1) shall ensure that the risk management function referred to in that subsection is structured in such a way that facilitates the functioning of a risk management system for which those trustees shall adopt strategies, processes and reporting procedures necessary to ensure that the risks, at an individual and at an aggregated level, to which the scheme or trust RAC is or could be exposed and their interdependencies can be identified, measured, monitored, man
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