Risk Profile Disclosure
Overview
As part of the Capital Requirements Directive, introduced by the European Union in 2007, banks and building societies have a requirement to publish a document describing the risks the business faces in its normal course of business, alongside a description of the Capital held to support the business.
Where internal models are used for the calculation of capital this document provides a description of the model used and its results.
This disclosure process is referred to as “Pillar 3” of the Capital Requirements Directive.