(1) The management body of an investment firm shall ensure that the investment firm has 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 subparagraphs (a), (b) and (c).

(2) The strategies, policies, processes and systems referred to in paragraph (1) shall -

(a) be proportionate to -

(i) the complexity, risk profile and scope of operation of the investment firm, and

(ii) the risk tolerance set by the investment firm’s management body, and

(b) reflect the investment firm’s importance in each Member State in which it carries out business.