Risk Management and Controls

PRA Rules

• Algorithmic Trading
• Record Keeping
• Related Party Transaction Risk
• Risk Control
• Skills, Knowledge, and Expertise
• Compliance and Internal Audit
• General Organisational Requirements
• Close Links
• Change in Control
• Group Risk Systems
• Housing

UK technical standards

• Organisational requirements of investment firms engaged in algorithmic trading - Commission Delegated Regulation (EU) 2017/589, as amended, including by the Technical Standards (Markets in Financial Instruments Directive) (EU Exit) (PRA) Instrument 2019.
• Certain prudential requirements for central securities depositories and designated credit institutions offering banking-type ancillary services Commission Delegated Regulation (EU) 2017/390, Articles 9-42, as amended, including by the Technical Standards (Central Securities Depositories offering Ancillary Banking Services) (EU Exit) Instrument 2019.
• OTC derivatives, central counterparties and trade repositories with regard to regulatory technical standards for risk-mitigation techniques for OTC derivative contracts not cleared by a central counterparty - Commission Delegated Regulation 2016/2251, Article 30a, as amended, including by the Technical Standards (European Market Infrastructure) (EU Exit) (No. 3) Instrument 2019 and PRA Standards Instrument: The Technical Standards (Bilateral Margining) Instrument 2022.

Supervisory Statements and Statements of Policy

• The Internal Capital Adequacy Assessment Process (ICAAP) and the Supervisory Review and Evaluation Process (SREP) (SS31/15)
• The PRA’s approach to supervising liquidity and funding risks (SS24/15)
• Enhancing banks’ and insurers’ approaches to managing the financial risks from climate change (SS3/19)
• Algorithmic trading (SS5/18)
• Market risk (SS13/13)
• Underwriting standards for buy-to-let mortgage contracts (SS13/16)
• Supervising building societies’ treasury and lending activities (SS20/15)
• Aggregation of holdings for the purpose of prudential assessment of controllers (SS33/15)
• Asset and liability management: suggestions for greater effectiveness (LSS1/13)
• Settlement bank exposures to customer banks: management of the risks (LSS12/13)
• The Bank of England’s approach to stress testing the UK’s banking system (Statement of Policy)

Other relevant material

Guidelines originally issued by European Supervisory Authorities should be read in conjunction with "Interpretation of EU Guidelines and Recommendations: Bank of England and PRA approach after the UK’s withdrawal from the EU" (Statement of Policy)

• Guidelines on the management of interest rate risk arising from non-trading book activities (EBA/GL/2018/02)
• Guidelines on information and communications technology (ICT) and security risk management (EBA/GL/2019/04)
• Guidelines on common procedures and methodology for Supervisory Review and Evaluation Process (SREP) (EBA/GL/2014/13)
• Guidelines on credit institutions’ credit risk management practices and accounting for expected credit losses (EBA/GL/2017/06)
• Guidelines on ICT Risk Assessment under the Supervisory Review and Evaluation Process (SREP) (EBA/GL/2017/05)
• Guidelines on certain aspects of the MiFID II suitability requirements (ESMA-35-43-1163)
• Joint Guidelines for the prudential assessment of acquisitions of qualifying holdings (CEBS/2008/214)