There might be specific intra-group linkages that could nullify the impact of conventional risk mitigation techniques at the group level by simply shifting the risk from one of the group entities to another.
2  BIS Review 133/2008  •  Another problem is the overstatement of capital or double gearing whereby the capital of one entity is used to satisfy the requirements of more than one affiliate entities. This phenomenon is typical where investments are made by the parent body in its subsidiaries.