(4)Credit risk and market risk are typically entered into in order to generate business. Depending on the amounts and risk involved, such business activities can have a material impact on an institution’s risk profile. It is therefore appropriate to use criteria based on limits of authority to identify staff members the activities of which can have a material impact on an institution’s risk profile. Those criteria should be calculated at least annually on the basis of capital figures and approaches used for regulatory purposes. To ensure the proportionate application of the criteria within small institutions, however, a de minimis threshold for credit risk should be applied.