ORFR target amount and tolerance limit

1. For the purposes of paragraph 9, an RSE licensee must determine:
   1. a target amount of financial resources (ORFR target amount); and
   2. a tolerance limit below the ORFR target amount (tolerance limit). Where ORFR financial resources fall below the tolerance limit, the RSE licensee must take action to replenish financial resources to meet the ORFR.
2. An RSE licensee’s ORFR target amount and tolerance limit must be determined on a prudent basis that suitably reflects:
   1. the RSE licensee’s operational risk profile and risk assessments;
   2. the uses of the ORFR financial resources permitted under paragraph 15; and
   3. the size, business mix and complexity of the RSE licensee’s business operations.
3. If APRA considers that the ORFR target amount and/or tolerance limit set by the RSE licensee does not adequately reflect the requirements of this Prudential Standard, APRA may require an RSE licensee to:
   1. meet an ORFR target amount determined by APRA, within a specified time; and/or
   2. adopt a tolerance limit determined by APRA.