Institutions are required to implement robust frameworks for monitoring and controlling large exposures as stipulated by regulatory guidelines. This mandate emphasises the necessity for institutions to have comprehensive systems in place to assess risk and ensure compliance with prevailing regulations.

Effective management of large exposures is crucial not only for individual institution’s stability but also for the broader financial system. Institutions must adopt proactive practices to mitigate potential risks, demonstrating a commitment to both regulatory compliance and prudent risk management.