The role of the Board of a Level 3 Head

12. The Board of a Level 3 Head must:

(a) approve the aggregate risk exposures policy for the Level 3 group;

(b) ensure that adequate systems and controls are in place to identify, measure, aggregate, manage, monitor and report on material risk exposures in the Level 3 group in a timely manner and that those systems and controls are documented;

(c) engage in oversight, which may be via a board committee, of the approach to the identification, measurement, management and monitoring of aggregate risk exposures and compliance with the aggregate risk exposures policy, which includes receiving regular reviews of material aggregate risk exposures of the Level 3 group; and

(d) review the aggregate risk exposures policy at least annually to ensure that this policy remains adequate and appropriate for identifying, measuring, aggregating, managing and monitoring the Level 3 group’s risk exposures.