Volume 2 — Governance and ControlsGovernance and Controls © Copyright 2002, All rights reserved 52 • Approval process. • Increasing a counterparty’s credit limit. • Measuring credit risk exposure. • Role in use of credit derivatives. • Use of the credit reserve. • Credit risk reporting. • Compliance. • Exceptions to credit risk limits. • Credit limit review process by credit management. • Credit availability review process by designated employees. • Consequences for policy violations. • Credit risk mitigating actions. • Credit risk assessment. • Credit VaR. • Credit concentrations. • Maintenance of counterparty credit files (frequency of updates and sources). 7. Accounting Standards, Hedging Effectiveness, and FAS 133 Compliance • Accounting standards. • Purpose of FAS 133. • Hedged items—nature of the risks being hedged, hedging instruments, and specific strategies. • Summary of hedging strategies. • Hedging strategy documentation.