Recital 1

(1)A general methodology for mapping a risk factor of a position to a broad risk factor category for the purposes of Article 325bd(1) of Regulation (EU) No 575/2013 should enable institutions to identify broad risk factor categories and broad risk factor sub-categories corresponding to the risks embedded in the risk factor in order to determine its appropriate liquidity horizon. The general methodology should be sufficiently generic to be applicable for most risk factors.