•  The guidelines set out the basic principles of a prudent system to control the risks in derivatives activities. It is required that all risks arising from derivatives exposures should be analysed and documented and the management of derivative activities should be integrated into the bank’s overall risk management system using a conceptual framework common to the bank’s other activities.
•  The critical importance of “suitability” and “appropriateness” policies within banks for derivative products being offered to customers (users) have been underlined.