Dynamic risk management

The Board continued working through the parts of its new model for the Dynamic Risk Management research project. In respect of the target profile – its designation in terms of items within it and requirements for documentation – the Board agreed staff should continue developing the model so that there are qualifying criteria to determine the target profile; that designation of portfolios or parts of portfolios subject to meeting defined criteria is permitted and, voluntary de-designation is not allowed, although de-designation is required in certain specified circumstances. Formal documentation of the items used to determine the target portfolio is required.