An institution is required to establish robust administrative and accounting practices, complemented by effective internal control mechanisms. These measures are crucial for the accurate identification, management, monitoring, reporting, and recording of all large exposures and any subsequent alterations to them.

Compliance with these obligations, as outlined in the relevant Regulation, not only ensures regulatory adherence but also fortifies the institution’s risk management framework. It is imperative that these procedures are not only sound but also adaptable, allowing for a dynamic response to changes in large exposures.