ORFR strategy

1. An RSE licensee must formulate and give effect to an ORFR strategy that sets out how it will meet the ORFR. At a minimum, the ORFR strategy must include the RSE licensee’s:
   1. ORFR target amount and tolerance limit, including how and why it has determined these amounts to be appropriate;
   2. processes and parameters for determining when and how the ORFR financial resources can be used;
   3. approach to holding the ORFR financial resources, including how the RSE licensee will ensure that the requirements in paragraphs 16 and 17 (as applicable) are met on an ongoing basis;
   4. investment strategy for operational risk reserves held to meet the ORFR target amount;
   5. process for implementing a replenishment plan in accordance with paragraph 18 (replenishment plan);
   6. review process for the ORFR target amount, tolerance limit and ORFR strategy; and
   7. process for managing the financial resources held to meet the ORFR target amount in the event that the RSE licensee or RSE is wound up.
2. The Board must approve the ORFR strategy and is ultimately accountable for ensuring the implementation of the RSE licensee’s ORFR strategy.