risk concentration

Defined in Article 2, Directive 2002/87/EC

Definitions over time (4)

1. 26/06/2021 – today applies on 11/11/2026 Article 2, Directive 2002/87/EC Scope: Whole act

   ‘risk concentration’ means all risk exposures with a loss potential which is large enough to threaten the solvency or the financial position in general of the regulated entities in a financial conglomerate, whether such exposures are caused by counterparty risk/credit risk, investment risk, insurance risk, market risk, other risks, or a combination or interaction of such risks. Until the entry into force of any regulatory technical standards adopted in accordance with Article 21a(1)(b), the opinion referred to in point (17)(c) shall, in particular, take into account the market share of the regulated entities of the financial conglomerate in other Member States, in particular if it exceeds 5 %, and the importance in the financial conglomerate of any regulated entity established in another Member State.

2. 01/01/2014 – 26/06/2021 Article 2, Directive 2002/87/EC Scope: Whole act

   ‘risk concentration’ means all risk exposures with a loss potential which is large enough to threaten the solvency or the financial position in general of the regulated entities in a financial conglomerate, whether such exposures are caused by counterparty risk/credit risk, investment risk, insurance risk, market risk, other risks, or a combination or interaction of such risks.

3. 09/12/2011 – 01/01/2014 Article 2, Directive 2002/87/EC Scope: Whole act

   ‘risk concentration’ means all risk exposures with a loss potential which is large enough to threaten the solvency or the financial position in general of the regulated entities in a financial conglomerate, whether such exposures are caused by counterparty risk/credit risk, investment risk, insurance risk, market risk, other risks, or a combination or interaction of such risks. Until the entry into force of any regulatory technical standards adopted in accordance with Article 21a(1)(b), the opinion referred to in point (17)(c) shall, in particular, take into account the market share of the regulated entities of the financial conglomerate in other Member States, in particular if it exceeds 5 %, and the importance in the financial conglomerate of any regulated entity established in another Member State.

4. 13/04/2005 – 09/12/2011 Article 2, Directive 2002/87/EC Scope: Whole act

   ‘risk concentration’ shall mean all exposures with a loss potential borne by entities within a financial conglomerate, which are large enough to threaten the solvency or the financial position in general of the regulated entities in the financial conglomerate; such exposures may be caused by counterparty risk/credit risk, investment risk, insurance risk, market risk, other risks, or a combination or interaction of these risks.

Used in (23 places in 12 provisions on 11/11/2026)

Directive 2002/87/EC (23 in 12)

Recital 2 · Recital 7 · Article 2 · Article 7⁶ · Article 9 · Article 11 · Article 12 · Article 16 · Article 21 · Article 21a · Article 31³ · Annex II⁵