Consistent standard formula replication (implicit correlations)
Consistent standard formula replication (implicit correlations)
Consistent standard formula replication (implicit correlations)
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Examples of Techniques to Integrate PIMs VII<br />
‣ <strong>Consistent</strong> <strong>standard</strong> <strong>formula</strong> <strong>replication</strong> (<strong>implicit</strong> <strong>correlations</strong>)<br />
(cont’d)<br />
‣ Conditions under which may be appropriate<br />
‣ Standard <strong>formula</strong> <strong>implicit</strong> <strong>correlations</strong> adequately capture the risk profile<br />
‣ Immaterial diversification benefits<br />
‣ Immaterial resulting part of the SCR calculated using the <strong>standard</strong> <strong>formula</strong><br />
‣ Developing other techniques disproportionate<br />
‣ Not enough knowledge/information to apply any other technique
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