FSA pillar 2: group risk

Under pillar 2 of current FSA rules, firms are required to carry out an ICA and one of the risks they must assess is group risk. I was wondering if anyone clould clarify what is meant by group risk?

Thx in advance!

 

Group risk is when your company is negatively affected by the actions of another company belonging to the same corporate group.

For example, if you're the group's insurance company then you would be affected if other companies in the group mis-sell your policies or poor investment returns by the group's investment company if they're your asset managers.

 

That's great. Thanks very much for your help!