# Can a Bank Strategically Combine the Standardised and Internal Model Approaches across Different Desks? ▴ Question

**Published:** 2025-08-04
**Categories:** Question

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## Concept

The capacity for a banking institution to combine the Standardised and Internal Model Approaches is a direct, architectural feature of the prevailing [market risk capital](https://prime.greeks.live/area/market-risk-capital/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) framework established by the Fundamental Review of the Trading Book (FRTB). Your question addresses the core of the system’s design. The framework explicitly moves away from an all-or-nothing application of [internal models](https://prime.greeks.live/area/internal-models/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), instituting a more granular and operationally flexible system. This design grants model approval at the trading desk level, enabling a bank to operate a hybrid capital measurement structure.

Certain desks, characterized by liquid, well-understood risk factors and robust historical data, may qualify for and benefit from the [Internal Model Approach](https://prime.greeks.live/area/internal-model-approach/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (IMA). Concurrently, other desks dealing with more opaque, illiquid, or exotic risks can operate under the [Advanced Standardised Approach](https://prime.greeks.live/area/advanced-standardised-approach/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (ASA).

This structural shift acknowledges the heterogeneous nature of a bank’s trading operations. It provides a mechanism to align the method of capital calculation with the specific risk profile and data availability of each distinct business unit. The framework is built upon the principle that a single, monolithic approach is suboptimal for a complex financial institution.

The ability to combine methodologies is the central strategic element introduced by the [FRTB](https://prime.greeks.live/area/frtb/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). It allows an institution to deploy its analytical resources and modeling capabilities where they yield the most significant benefit in terms of risk sensitivity and capital efficiency, while maintaining a robust, conservative standardized measure for portfolios where internal modeling is impractical or inefficient.

> The Fundamental Review of the Trading Book framework is architected to permit a combination of internal and standardised models by granting approval at the individual trading desk level.

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## What Defines the New Market Risk Architecture?

The contemporary market risk framework, introduced under Basel 3.1, represents a complete overhaul of its predecessors. Its architecture is founded on a clear delineation between the [trading book](https://prime.greeks.live/area/trading-book/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) and the banking book, and it provides a multi-tiered system for calculating [market risk capital requirements](https://prime.greeks.live/area/market-risk-capital-requirements/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). This system is designed to enhance consistency across institutions and improve the risk-sensitivity of capital calculations. The core components of this architecture are the distinct methodologies available to banks, each calibrated for different levels of complexity and risk.

The primary approaches are:

- **The [Advanced Standardised](https://prime.greeks.live/question/what-are-the-strategic-trade-offs-between-the-standardised-approach-and-the-internal-model-approach-under-frtb/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) Approach (ASA)** This is the default, comprehensive standardised methodology available to all firms. It calculates capital requirements through three main components ▴ the [Sensitivities-based Method](https://prime.greeks.live/area/sensitivities-based-method/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (SbM), the Default Risk Charge (DRC), and the Residual Risk Add-on (RRAO). The ASA is significantly more risk-sensitive than previous standardised approaches but does not require the intensive model validation and supervisory approval process of the IMA.

- **The Internal Model Approach (IMA)** This approach allows a bank to use its own internal models to calculate [capital requirements](https://prime.greeks.live/area/capital-requirements/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), subject to stringent supervisory approval. The new IMA replaces the old Value-at-Risk (VaR) measure with Expected Shortfall (ES), a metric designed to better capture tail risk. A critical innovation is the introduction of a framework for [Non-Modellable Risk Factors](https://prime.greeks.live/area/non-modellable-risk-factors/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (NMRFs), which mandates a specific capital charge for risks that cannot be reliably modeled due to scarce data.

- **The Simplified [Standardised Approach](https://prime.greeks.live/area/standardised-approach/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (SSA)** This is a recalibrated version of the older standardised approach, available only to institutions with small trading book business, offering a less operationally complex option.

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## The Trading Desk as the Unit of Application

The most significant architectural change facilitating the combination of approaches is the shift in the unit of [supervisory approval](https://prime.greeks.live/area/supervisory-approval/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) for internal models. Under the FRTB, permission to use the IMA is granted at the trading desk level. A trading desk is a well-defined group of traders or trading accounts with a clear business strategy and [risk management](https://prime.greeks.live/area/risk-management/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) structure. This granularity is the key that unlocks strategic combination.

A bank is no longer faced with a binary choice of using internal models for its entire trading book or not at all. Instead, it can conduct a cost-benefit analysis for each [trading desk](https://prime.greeks.live/area/trading-desk/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), deciding where the investment in developing, validating, and maintaining an [internal model](https://prime.greeks.live/area/internal-model/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is justified by the resulting capital efficiencies and superior risk management.

This desk-level [approval process](https://prime.greeks.live/question/what-are-the-key-challenges-a-financial-institution-faces-during-the-imm-approval-process/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) necessitates a robust internal governance framework. Banks must clearly define their trading desks, document their strategies, and possess the infrastructure to manage P&L and risk at this granular level. The supervisor evaluates each desk’s model for approval, including rigorous back-testing and profit and loss [attribution tests](https://prime.greeks.live/question/how-can-institutions-validate-the-scenarios-generated-for-volatility-surface-stress-tests/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (PLAT) to ensure the model’s accuracy and conservatism.

A desk that fails these ongoing tests will lose its [IMA](https://prime.greeks.live/area/ima/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) approval and must revert to using the Advanced Standardised Approach. This creates a dynamic system where the right to use internal models must be continuously earned through demonstrated performance.

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## Strategy

The decision to combine the Advanced Standardised Approach (ASA) and the Internal [Model Approach](https://prime.greeks.live/question/what-are-the-strategic-trade-offs-between-the-standardised-approach-and-the-internal-model-approach-under-frtb/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (IMA) is a profound strategic exercise in capital and operational optimization. It requires a bank to perform a rigorous, desk-by-desk analysis, weighing the benefits of lower, more risk-sensitive capital charges under the IMA against the substantial operational costs and regulatory burdens associated with it. The core of the strategy is to selectively deploy the IMA for [trading desks](https://prime.greeks.live/question/how-might-the-divergent-application-of-basel-iii-rules-between-the-us-and-europe-impact-global-trading-desks/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) where the capital savings and enhanced risk insights justify the immense investment, while utilizing the ASA for all other desks.

This hybrid model allows a bank to architect a [capital framework](https://prime.greeks.live/question/how-does-multilateral-netting-within-a-ccp-framework-enhance-capital-efficiency/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) tailored to its unique business mix. For desks engaged in high-volume, liquid, and vanilla products, the data richness and predictability of risk factors make them prime candidates for the IMA. The development of an [Expected Shortfall](https://prime.greeks.live/area/expected-shortfall/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) model for these desks can lead to a capital requirement that more accurately reflects the portfolio’s diversification and hedging, potentially offering a significant reduction compared to the ASA. Conversely, for desks trading in illiquid credit products, exotic derivatives, or markets with sparse data, the hurdles to achieve IMA approval are immense.

The [risk factors](https://prime.greeks.live/area/risk-factors/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) would likely be classified as Non-Modellable Risk Factors (NMRFs), attracting a punitive capital charge that could negate any benefits of the IMA. For these desks, the [ASA](https://prime.greeks.live/area/asa/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) provides a clear, albeit conservative, capital outcome without the associated modeling and validation overhead.

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## The Strategic Calculus of Model Selection

Choosing the appropriate approach for each trading desk is a multi-faceted decision. It extends beyond a simple comparison of capital numbers. The strategic calculus involves a holistic assessment of both quantitative and qualitative factors. A bank must systematically evaluate each desk against a set of critical criteria to determine the optimal path.

The primary considerations in this strategic analysis include:

- **Capital Impact** The most direct factor is the potential difference in Risk-Weighted Assets (RWA) between the ASA and IMA. This requires a quantitative impact study for each desk, modeling its portfolio under both methodologies. The analysis must consider not only the Sensitivities-based Method of the ASA but also the [Default Risk Charge](https://prime.greeks.live/area/default-risk-charge/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) and the [Residual Risk Add-on](https://prime.greeks.live/area/residual-risk-add-on/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), comparing them to the IMA’s Expected Shortfall, DRC, and NMRF charges.

- **Data Availability and Quality** The IMA demands extensive, high-quality [historical data](https://prime.greeks.live/area/historical-data/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) to model risk factors and pass supervisory tests. A desk’s access to clean, observable market data is a critical prerequisite. If a significant portion of a desk’s risk factors would be deemed non-modellable, the resulting [NMRF](https://prime.greeks.live/area/nmrf/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) capital charge could make the IMA economically unviable.

- **Operational Complexity and Cost** Implementing and maintaining an IMA-compliant framework is a massive undertaking. It requires specialized quantitative talent, sophisticated IT infrastructure, and robust governance processes for model validation, back-testing, and P&L attribution. The bank must weigh these significant, ongoing costs against the potential capital benefits.

- **Business Strategy and Portfolio Nature** The nature of the desk’s trading strategy is a key indicator. Desks with complex, non-linear products may face challenges in passing the P&L attribution tests required for IMA approval. Desks with stable, well-understood strategies are better candidates than those with rapidly evolving or opportunistic mandates.

> A successful hybrid strategy requires a rigorous, desk-specific evaluation of capital benefits versus the operational costs and data requirements of the Internal Model Approach.

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## Architecting the Hybrid Capital Framework

Constructing an effective hybrid capital framework is an exercise in strategic segmentation. The bank must classify its trading desks based on their suitability for each approach. This segmentation forms the blueprint for the bank’s implementation project and its long-term capital management strategy. The following table provides a comparative framework for this segmentation analysis.

| Factor | Optimal for Internal Model Approach (IMA) | Optimal for Advanced Standardised Approach (ASA) |
| --- | --- | --- |
| Portfolio Complexity | Complex but well-diversified portfolios where the benefits of recognizing correlations and netting are high. | Portfolios with concentrated risks, significant exotic exposures, or products subject to the Residual Risk Add-on. |
| Risk Factor Data | Rich, observable, and deep historical data for the vast majority of risk factors, minimizing the number of NMRFs. | Portfolios exposed to illiquid markets or risk factors with sparse data, which would lead to high NMRF charges under IMA. |
| P&L Characteristics | P&L is primarily driven by risk factors that can be accurately modeled, enabling the desk to consistently pass P&L attribution tests. | P&L has significant unexplained variance or is driven by factors not captured in standard risk models. |
| Operational Capability | The bank has the necessary quantitative expertise, IT systems, and governance framework to support the IMA lifecycle. | The desk is of a smaller scale where the investment in IMA infrastructure is not justified by the potential capital savings. |
| Capital Benefit | Significant potential for RWA reduction compared to the ASA, justifying the implementation and maintenance costs. | Minimal or negative capital benefit from IMA, particularly after accounting for NMRF charges and operational costs. |

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## Execution

The execution of a hybrid market [risk capital](https://prime.greeks.live/area/risk-capital/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) strategy transitions from strategic planning to a complex, multi-stage implementation project. It demands a highly disciplined approach, meticulous project management, and deep engagement between risk, finance, IT, and front-office functions. The execution phase is fundamentally about building the operational capacity to run two distinct capital calculation systems in parallel and to navigate the rigorous supervisory approval process for the selected Internal Model Approach (IMA) desks.

The operational reality is that every bank, even one with extensive IMA approval, must have the systems and processes in place to calculate the Advanced Standardised Approach (ASA) for its entire trading book. The ASA serves not only as the primary methodology for non-IMA desks but also as the mandatory fallback for any IMA-approved desk that fails its ongoing validation tests. This dual-system requirement is the foundational challenge of execution. It necessitates an IT architecture and data infrastructure capable of feeding both the sensitivity-based calculations of the ASA and the stochastic simulations of the IMA.

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## How Is the Desk-Level Approval Process Managed?

Securing IMA approval for a trading desk is a demanding, resource-intensive process that requires a sustained, collaborative effort with regulators. The process is not a one-time event but an ongoing cycle of validation and performance monitoring. A bank must demonstrate not only the initial integrity of its model but also its continued accuracy over time.

The critical path to IMA approval involves several distinct stages:

- **Desk Definition and Scoping** The institution must first formally define its trading desks according to regulatory criteria, establishing clear business strategies, risk management structures, and P&L reporting lines for each. This is followed by a rigorous scoping exercise to identify which desks are viable candidates for an IMA application.

- **Model Development and Documentation** For each candidate desk, the bank must develop an Expected Shortfall (ES) model compliant with all regulatory specifications. This includes calibrating the model to a period of significant financial stress and incorporating the prescribed liquidity horizons for different risk factors. Extensive documentation detailing the model’s methodology, assumptions, and limitations is required.

- **Data Sourcing and Validation** The bank must build and maintain a robust data infrastructure to source the historical data needed for the ES model and the identification of Non-Modellable Risk Factors (NMRFs). This involves establishing criteria for data quality, completeness, and observability.

- **Independent Validation** An independent model validation function within the bank must rigorously test the model, challenging its assumptions, methodology, and implementation. This internal validation is a critical prerequisite for a supervisory application.

- **Supervisory Pre-Application and Application** Banks typically engage in a pre-application dialogue with their supervisor to present their proposed model and implementation plan. This is followed by the formal submission of the application, which includes all model documentation, validation reports, and results from initial back-testing and P&L attribution tests.

- **Ongoing Performance Monitoring** Post-approval, the desk is subject to continuous performance monitoring through daily back-testing and P&L attribution tests. Failure to meet the specified thresholds for these tests results in the desk losing its IMA status and reverting to the ASA.

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## Quantitative Comparison a Tale of Two Desks

To illustrate the practical execution of a hybrid strategy, consider a hypothetical bank analyzing two distinct trading desks ▴ a G10 [Interest Rate Swaps](https://prime.greeks.live/area/interest-rate-swaps/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) desk and a Structured Credit Solutions desk. The bank’s objective is to determine the optimal capital approach for each.

> Executing a hybrid approach requires building the capacity to run both ASA and IMA systems in parallel while navigating the rigorous, multi-stage IMA approval process for each selected desk.

The following table presents a simplified quantitative comparison of the potential capital requirements under both the ASA and IMA for these two desks. This analysis is central to the execution decision.

| Desk / Capital Component | G10 Interest Rate Swaps Desk | Structured Credit Solutions Desk |
| --- | --- | --- |
| Sensitivities-based Method (SbM) | $100M (High netting benefits but standardised correlations apply) | $150M (Concentrated spread risk, limited netting) |
| Default Risk Charge (DRC) | $5M (Low default risk for G10 sovereigns) | $80M (High default risk on underlying corporate and structured names) |
| Residual Risk Add-on (RRAO) | $0M (Vanilla instruments) | $20M (Exotic payoffs and correlation exposures) |
| Total ASA Capital | $105M | $250M |
| Expected Shortfall (ES) | $60M (Model captures portfolio-specific correlations and diversification more accurately) | $120M (Internal model shows high tail risk) |
| Default Risk Charge (DRC) | $4M (Modeled DRC slightly lower) | $75M (Similar to ASA but allows for some modeling) |
| Non-Modellable Risk Factor (NMRF) Charge | $2M (Very few illiquid points on the curve) | $90M (Many underlying reference entities are illiquid, leading to significant NMRF charges) |
| Total IMA Capital | $66M | $285M |
| Execution Decision | Pursue IMA. The significant capital saving (~37%) justifies the operational investment. Data is readily available and the portfolio is suitable for modeling. | Utilize ASA. The IMA results in higher capital due to the punitive NMRF charge. The cost of building and validating a model outweighs any potential benefit. |

This quantitative exercise demonstrates the core of the execution strategy. The decision is data-driven. For the G10 Rates desk, the path is clear ▴ the investment in IMA yields a substantial capital benefit.

For the Structured Credit desk, the analysis reveals that the ASA is the more efficient and prudent path, avoiding a costly and ultimately fruitless IMA implementation. A bank would replicate this analysis across all its trading desks to build its customized, hybrid capital framework.

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## References

- Basel Committee on Banking Supervision. “Minimum capital requirements for market risk.” January 2019.

- PricewaterhouseCoopers. “Basel IV ▴ Revised internal models approach for market risk.” 2016.

- Bank of England. “CP16/22 ▴ Implementation of the Basel 3.1 standards ▴ Market risk.” November 2022.

- European Central Bank. “Market risk ▴ implementing new rules for internal models.” 2019.

- Financial Risk Group. “Navigating Basel 3.1 Market Risk (FRTB) ▴ Choosing Between ASA vs. IMA.” November 2024.

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## Reflection

The capacity to construct a hybrid [market risk](https://prime.greeks.live/area/market-risk/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) framework is a defining feature of the current regulatory architecture. The analysis presented here outlines the strategic and executional components of this system. The ultimate configuration for any institution, however, is a reflection of its own identity. It is a function of its market footprint, its appetite for complexity, its investment in quantitative capabilities, and its overarching strategic objectives.

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## What Does Your Optimal Capital Architecture Look Like?

Consider the composition of your own trading operations. Where does the value of precision outweigh the cost of complexity? Which business lines are defined by risks so unique that a standardised measure, however advanced, fails to capture their true economic substance?

The answers to these questions will define the blueprint for your institution’s optimal capital structure. The framework provides the tools; the final architecture is yours to design.

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## Glossary

<a href="https://prime.greeks.live/area/market-risk-capital/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
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## Market Risk Capital

Meaning ▴ Market Risk Capital represents the amount of capital an institution must allocate and hold to absorb potential losses arising from adverse movements in the market prices of its trading book positions. </a><a href="https://prime.greeks.live/area/internal-models/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
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## Internal Models

Meaning ▴ Within the sophisticated systems architecture of institutional crypto trading and comprehensive risk management, Internal Models are proprietary computational frameworks developed and rigorously maintained by financial firms. </a><a href="https://prime.greeks.live/area/advanced-standardised-approach/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
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## Advanced Standardised Approach

Meaning ▴ The Advanced Standardised Approach (ASA) represents a regulatory methodology within frameworks like Basel for calculating operational risk capital requirements. </a><a href="https://prime.greeks.live/area/internal-model-approach/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
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## Internal Model Approach

Meaning ▴ The Internal Model Approach (IMA), originating from financial regulation and relevant to sophisticated crypto institutions, allows a financial entity to use its proprietary risk management models to calculate regulatory capital requirements. </a><a href="https://prime.greeks.live/area/frtb/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
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## Frtb

Meaning ▴ FRTB, the Fundamental Review of the Trading Book, is an international regulatory standard by the Basel Committee on Banking Supervision (BCBS) for market risk capital requirements. </a><a href="https://prime.greeks.live/area/market-risk-capital-requirements/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Dark precision apparatus with reflective spheres, central unit, parallel rails. Visualizes institutional-grade Crypto Derivatives OS for RFQ block trade execution, driving liquidity aggregation and algorithmic price discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-system.jpg)

## Market Risk Capital Requirements

Meaning ▴ Market Risk Capital Requirements represent the amount of capital financial institutions must hold to cover potential losses arising from adverse movements in market prices, such as interest rates, foreign exchange rates, commodity prices, and equity prices. </a><a href="https://prime.greeks.live/area/trading-book/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Two distinct, polished spherical halves, beige and teal, reveal intricate internal market microstructure, connected by a central metallic shaft. This embodies an institutional-grade RFQ protocol for digital asset derivatives, enabling high-fidelity execution and atomic settlement across disparate liquidity pools for principal block trades](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-high-fidelity-execution-prime-os.jpg)

## Trading Book

Meaning ▴ A Trading Book refers to a portfolio of financial instruments, including digital assets, held by a financial institution with the explicit intent to trade, hedge other trading book positions, or arbitrage. </a><a href="https://prime.greeks.live/area/sensitivities-based-method/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A Principal's RFQ engine core unit, featuring distinct algorithmic matching probes for high-fidelity execution and liquidity aggregation. This price discovery mechanism leverages private quotation pathways, optimizing crypto derivatives OS operations for atomic settlement within its systemic architecture](https://options.greeks.live/wp-content/uploads/2025/08/principals-rfq-engine-driving-optimal-digital-asset-derivatives.jpg)

## Sensitivities-Based Method

Meaning ▴ The sensitivities-based method is a quantitative risk management approach, widely applied in finance and adapted for crypto investing and options trading, that quantifies how a portfolio's value responds to marginal changes in various market parameters, often termed "sensitivities" or "Greeks. </a><a href="https://prime.greeks.live/question/what-are-the-strategic-trade-offs-between-the-standardised-approach-and-the-internal-model-approach-under-frtb/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sophisticated metallic mechanism, split into distinct operational segments, represents the core of a Prime RFQ for institutional digital asset derivatives. Its central gears symbolize high-fidelity execution within RFQ protocols, facilitating price discovery and atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/precision-rfq-engine-for-institutional-digital-asset-derivatives-trading.jpg)

## Advanced Standardised

The choice between FRTB's Standardised and Internal Model approaches is a strategic trade-off between operational simplicity and capital efficiency. </a><a href="https://prime.greeks.live/area/non-modellable-risk-factors/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![An abstract composition of interlocking, precisely engineered metallic plates represents a sophisticated institutional trading infrastructure. Visible perforations within a central block symbolize optimized data conduits for high-fidelity execution and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-multi-leg-execution-layer.jpg)

## Non-Modellable Risk Factors

Meaning ▴ Non-modellable risk factors are elements of financial risk that cannot be accurately captured or quantified by existing quantitative risk models due to insufficient historical data, extreme market conditions, or the inherently unpredictable nature of certain events. </a><a href="https://prime.greeks.live/area/capital-requirements/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A deconstructed mechanical system with segmented components, revealing intricate gears and polished shafts, symbolizing the transparent, modular architecture of an institutional digital asset derivatives trading platform. This illustrates multi-leg spread execution, RFQ protocols, and atomic settlement processes](https://options.greeks.live/wp-content/uploads/2025/07/deconstructed-principal-trading-system-revealing-core-mechanics-of-digital-asset-derivatives-execution.jpg)

## Capital Requirements

Meaning ▴ Capital Requirements, within the architecture of crypto investing, represent the minimum mandated or operationally prudent amounts of financial resources, typically denominated in digital assets or stablecoins, that institutions and market participants must maintain. </a><a href="https://prime.greeks.live/area/standardised-approach/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precise mechanical instrument with intersecting transparent and opaque hands, representing the intricate market microstructure of institutional digital asset derivatives. This visual metaphor highlights dynamic price discovery and bid-ask spread dynamics within RFQ protocols, emphasizing high-fidelity execution and latent liquidity through a robust Prime RFQ for atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineering-driving-institutional-digital-asset-derivatives-execution-across-advanced-rfq-protocols-and-prime-brokerage-frameworks.jpg)

## Standardised Approach

Meaning ▴ A standardized approach refers to the adoption of uniform procedures, protocols, or methodologies across a system or industry, designed to ensure consistency, comparability, and interoperability. </a><a href="https://prime.greeks.live/area/supervisory-approval/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A proprietary Prime RFQ platform featuring extending blue/teal components, representing a multi-leg options strategy or complex RFQ spread. The labeled band 'F331 46 1' denotes a specific strike price or option series within an aggregated inquiry for high-fidelity execution, showcasing granular market microstructure data points](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-protocol-1.jpg)

## Supervisory Approval

Meaning ▴ Supervisory approval refers to the formal authorization or endorsement granted by a regulatory body, governmental agency, or an oversight committee for specific actions, products, or operational changes within a financial institution or crypto entity. </a><a href="https://prime.greeks.live/area/risk-management/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract depiction of an advanced institutional trading system, featuring a prominent sensor for real-time price discovery and an intelligence layer. Visible circuitry signifies algorithmic trading capabilities, low-latency execution, and robust FIX protocol integration for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-high-fidelity-rfq-protocols.jpg)

## Risk Management

Meaning ▴ Risk Management, within the cryptocurrency trading domain, encompasses the comprehensive process of identifying, assessing, monitoring, and mitigating the multifaceted financial, operational, and technological exposures inherent in digital asset markets. </a><a href="https://prime.greeks.live/area/internal-model/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A futuristic apparatus visualizes high-fidelity execution for digital asset derivatives. A transparent sphere represents a private quotation or block trade, balanced on a teal Principal's operational framework, signifying capital efficiency within an RFQ protocol](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-via-prime-os.jpg)

## Internal Model

Meaning ▴ An Internal Model defines a proprietary quantitative framework developed and utilized by financial institutions, including those active in crypto investing, to assess and manage various forms of risk, such as market, credit, and operational risk. </a><a href="https://prime.greeks.live/area/trading-desk/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![An intricate, transparent cylindrical system depicts a sophisticated RFQ protocol for digital asset derivatives. Internal glowing elements signify high-fidelity execution and algorithmic trading](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-protocol-architecture.jpg)

## Trading Desk

Meaning ▴ A Trading Desk, within the institutional crypto investing and broader financial services sector, functions as a specialized operational unit dedicated to executing buy and sell orders for digital assets, derivatives, and other crypto-native instruments. </a><a href="https://prime.greeks.live/question/how-can-institutions-validate-the-scenarios-generated-for-volatility-surface-stress-tests/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, bi-component digital asset derivatives engine reveals its intricate core, symbolizing an advanced RFQ protocol. This Prime RFQ component enables high-fidelity execution and optimal price discovery within complex market microstructure, managing latent liquidity for institutional operations](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-optimal-execution.jpg)

## Attribution Tests

Institutions validate volatility surface stress tests by combining quantitative rigor with qualitative oversight to ensure scenarios are plausible and relevant. </a><a href="https://prime.greeks.live/question/what-are-the-key-challenges-a-financial-institution-faces-during-the-imm-approval-process/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A futuristic system component with a split design and intricate central element, embodying advanced RFQ protocols. This visualizes high-fidelity execution, precise price discovery, and granular market microstructure control for institutional digital asset derivatives, optimizing liquidity provision and minimizing slippage](https://options.greeks.live/wp-content/uploads/2025/07/advanced-rfq-protocols-for-digital-asset-derivatives-price-discovery.jpg)

## Approval Process

The primary challenges in the IMM approval process are architecting a robust data and governance system and evidencing its systemic integrity to regulators. </a><a href="https://prime.greeks.live/area/ima/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precision optical system with a reflective lens embodies the Prime RFQ intelligence layer. Gray and green planes represent divergent RFQ protocols or multi-leg spread strategies for institutional digital asset derivatives, enabling high-fidelity execution and optimal price discovery within complex market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-intelligent-core-driving-digital-asset-derivatives-rfq-protocols-high-fidelity-execution-across-diverse-liquidity-pools-for-optimal-price-discovery.jpg)

## Ima

Meaning ▴ The Internal Model Approach (IMA) denotes a regulatory framework that permits financial institutions, under specific conditions, to employ their own proprietary risk management models for calculating regulatory capital requirements. </a><a href="https://prime.greeks.live/question/what-are-the-strategic-trade-offs-between-the-standardised-approach-and-the-internal-model-approach-under-frtb/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A modular, dark-toned system with light structural components and a bright turquoise indicator, representing a sophisticated Crypto Derivatives OS for institutional-grade RFQ protocols. It signifies private quotation channels for block trades, enabling high-fidelity execution and price discovery through aggregated inquiry, minimizing slippage and information leakage within dark liquidity pools](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-system-for-optimal-execution-1.jpg)

## Model Approach

The choice between FRTB's Standardised and Internal Model approaches is a strategic trade-off between operational simplicity and capital efficiency. </a><a href="https://prime.greeks.live/question/how-might-the-divergent-application-of-basel-iii-rules-between-the-us-and-europe-impact-global-trading-desks/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract system interface on a global data sphere, illustrating a sophisticated RFQ protocol for institutional digital asset derivatives. The glowing circuits represent market microstructure and high-fidelity execution within a Prime RFQ intelligence layer, facilitating price discovery and capital efficiency across liquidity pools](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-execution-prime-os.jpg)

## Trading Desks

Divergent Basel III rules create capital arbitrage opportunities, reshaping global trading desk strategy and competitiveness. </a><a href="https://prime.greeks.live/area/expected-shortfall/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Intricate core of a Crypto Derivatives OS, showcasing precision platters symbolizing diverse liquidity pools and a high-fidelity execution arm. This depicts robust principal's operational framework for institutional digital asset derivatives, optimizing RFQ protocol processing and market microstructure for best execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-microstructure-execution-system.jpg)

## Expected Shortfall

Meaning ▴ Expected Shortfall (ES), also known as Conditional Value-at-Risk (CVaR), is a coherent risk measure employed in crypto investing and institutional options trading to quantify the average loss that would be incurred if a portfolio's returns fall below a specified worst-case percentile. </a><a href="https://prime.greeks.live/question/how-does-multilateral-netting-within-a-ccp-framework-enhance-capital-efficiency/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precision-engineered institutional digital asset derivatives execution system cutaway. The teal Prime RFQ casing reveals intricate market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-rfq-protocol-core-engine.jpg)

## Capital Framework

Multilateral netting within a CCP systemically reduces gross exposures to a single net obligation, unlocking capital by lowering margin and regulatory requirements. </a><a href="https://prime.greeks.live/area/risk-factors/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Intricate dark circular component with precise white patterns, central to a beige and metallic system. This symbolizes an institutional digital asset derivatives platform's core, representing high-fidelity execution, automated RFQ protocols, advanced market microstructure, the intelligence layer for price discovery, block trade efficiency, and portfolio margin](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-core.jpg)

## Risk Factors

Meaning ▴ Risk Factors, within the domain of crypto investing and the architecture of digital asset systems, denote the inherent or external elements that introduce uncertainty and the potential for adverse outcomes. </a><a href="https://prime.greeks.live/area/asa/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![The image depicts two interconnected modular systems, one ivory and one teal, symbolizing robust institutional grade infrastructure for digital asset derivatives. Glowing internal components represent algorithmic trading engines and intelligence layers facilitating RFQ protocols for high-fidelity execution and atomic settlement of multi-leg spreads](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-platform-1.jpg)

## Asa

Meaning ▴ ASA, or Algorand Standard Asset, represents a native digital asset class built directly on the Algorand blockchain. </a><a href="https://prime.greeks.live/area/residual-risk-add-on/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, institutional-grade RFQ engine precisely interfaces with a dark blue sphere, symbolizing a deep latent liquidity pool for digital asset derivatives. This robust connection enables high-fidelity execution and price discovery for Bitcoin Options and multi-leg spread strategies](https://options.greeks.live/wp-content/uploads/2025/07/institutional-crypto-derivatives-rfq-engine-linking-deep-liquidity-pools.jpg)

## Residual Risk Add-On

Meaning ▴ A Residual Risk Add-On is an additional capital charge or risk buffer imposed by regulators or internal risk management frameworks to account for risks not fully captured by standard risk models. </a><a href="https://prime.greeks.live/area/default-risk-charge/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A detailed cutaway of a spherical institutional trading system reveals an internal disk, symbolizing a deep liquidity pool. A high-fidelity probe interacts for atomic settlement, reflecting precise RFQ protocol execution within complex market microstructure for digital asset derivatives and Bitcoin options](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-microstructure-revealed.jpg)

## Default Risk Charge

Meaning ▴ The Default Risk Charge represents a capital requirement or collateral adjustment designed to mitigate potential losses stemming from a counterparty's failure to satisfy its financial obligations. </a><a href="https://prime.greeks.live/area/historical-data/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Intersecting concrete structures symbolize the robust Market Microstructure underpinning Institutional Grade Digital Asset Derivatives. Dynamic spheres represent Liquidity Pools and Implied Volatility](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-framework-optimizing-rfq-execution-and-liquidity-for-principal-trading.jpg)

## Historical Data

Meaning ▴ In crypto, historical data refers to the archived, time-series records of past market activity, encompassing price movements, trading volumes, order book snapshots, and on-chain transactions, often augmented by relevant macroeconomic indicators. </a><a href="https://prime.greeks.live/area/nmrf/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek conduit, embodying an RFQ protocol and smart order routing, connects two distinct, semi-spherical liquidity pools. Its transparent core signifies an intelligence layer for algorithmic trading and high-fidelity execution of digital asset derivatives, ensuring atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-execution-engine-bridging-diverse-liquidity-pools-via-high-fidelity-rfq-protocol-orchestration.jpg)

## Nmrf

Meaning ▴ In the context of crypto systems architecture, 'NMRF' is not a universally recognized acronym or standard term. </a><a href="https://prime.greeks.live/area/risk-capital/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A dark blue, precision-engineered blade-like instrument, representing a digital asset derivative or multi-leg spread, rests on a light foundational block, symbolizing a private quotation or block trade. This structure intersects robust teal market infrastructure rails, indicating RFQ protocol execution within a Prime RFQ for high-fidelity execution and liquidity aggregation in institutional trading](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-framework-multi-leg-spreads-best-execution-capital-efficiency.jpg)

## Risk Capital

Meaning ▴ Risk Capital is the amount of capital an entity allocates to cover potential losses arising from unexpected adverse events or exposures. </a><a href="https://prime.greeks.live/area/interest-rate-swaps/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, futuristic object with a glowing line and intricate metallic core, symbolizing a Prime RFQ for institutional digital asset derivatives. It represents a sophisticated RFQ protocol engine enabling high-fidelity execution, liquidity aggregation, atomic settlement, and capital efficiency for multi-leg spreads](https://options.greeks.live/wp-content/uploads/2025/07/advanced-institutional-digital-asset-derivatives-rfq-protocol-execution-engine-for-optimal-liquidity-aggregation-and-atomic-settlement.jpg)

## Interest Rate Swaps

Meaning ▴ Interest Rate Swaps (IRS) in the crypto finance context refer to derivative contracts where two parties agree to exchange future interest payments based on a notional principal amount, typically exchanging fixed-rate payments for floating-rate payments, or vice-versa. </a><a href="https://prime.greeks.live/area/market-risk/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![An abstract composition featuring two overlapping digital asset liquidity pools, intersected by angular structures representing multi-leg RFQ protocols. This visualizes dynamic price discovery, high-fidelity execution, and aggregated liquidity within institutional-grade crypto derivatives OS, optimizing capital efficiency and mitigating counterparty risk](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-optimizing-aggregated-liquidity-and-multi-leg-execution-via-advanced-market-microstructure.jpg)

## Market Risk

Meaning ▴ Market Risk, in the context of crypto investing and institutional options trading, refers to the potential for losses in portfolio value arising from adverse movements in market prices or factors. </a>

**Tags:** [Trading Book](https://options.greeks.live/area/trading-book/), [Internal Model Approach](https://options.greeks.live/area/internal-model-approach/), [Internal Model](https://options.greeks.live/area/internal-model/), [Trading Desk](https://options.greeks.live/area/trading-desk/), [Market Risk Capital](https://options.greeks.live/area/market-risk-capital/), [Sensitivities-Based Method](https://options.greeks.live/area/sensitivities-based-method/)	

## Discover More

- 
### [How Do Regulatory Frameworks like FRTB Change a Bank’s Reliance on VaR?](https://options.greeks.live/question/how-do-regulatory-frameworks-like-frtb-change-a-banks-reliance-on-var/)
![Abstractly depicting an Institutional Grade Crypto Derivatives OS component. Its robust structure and metallic interface signify precise Market Microstructure for High-Fidelity Execution of RFQ Protocol and Block Trade orders. The angular teal plane represents a transparent Liquidity Pool driving Price Discovery and Atomic Settlement.](https://options.greeks.live/wp-content/uploads/2025/07/principals-integrated-crypto-derivatives-rfq-protocol-architecture.jpg)

FRTB systemically replaces VaR with Expected Shortfall, demanding integrated risk architecture and granular, data-driven capital allocation.

- 
### [How Do CCPs Calculate Initial Margin for Complex Derivatives Portfolios?](https://options.greeks.live/question/how-do-ccps-calculate-initial-margin-for-complex-derivatives-portfolios/)
![Translucent teal glass pyramid and flat pane, geometrically aligned on a dark base, symbolize market microstructure and price discovery within RFQ protocols for institutional digital asset derivatives. This visualizes multi-leg spread construction, high-fidelity execution via a Principal's operational framework, ensuring atomic settlement for latent liquidity.](https://options.greeks.live/wp-content/uploads/2025/07/transparent-geometric-structures-visualizing-multi-leg-spread-rfq-protocols-for-high-fidelity-institutional-digital-asset-derivatives-execution.jpg)

CCPs compute initial margin by modeling a portfolio's potential future loss to a high confidence level, securing the system against default.

- 
### [How Does ISO 20022 Implementation Affect a Bank’s Operational Risk Capital Requirements?](https://options.greeks.live/question/how-does-iso-20022-implementation-affect-a-banks-operational-risk-capital-requirements/)
![A futuristic, dark grey institutional platform with a glowing spherical core, embodying an intelligence layer for advanced price discovery. This Prime RFQ enables high-fidelity execution through RFQ protocols, optimizing market microstructure for institutional digital asset derivatives and managing liquidity pools.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-intelligence-layer.jpg)

ISO 20022 implementation re-architects financial data, enabling process automation that directly reduces operational loss events and capital requirements.

- 
### [What Is the Role of the Margin Period of Risk in Calculating Initial Margin?](https://options.greeks.live/question/what-is-the-role-of-the-margin-period-of-risk-in-calculating-initial-margin/)
![A sophisticated, illuminated device representing an Institutional Grade Prime RFQ for Digital Asset Derivatives. Its glowing interface indicates active RFQ protocol execution, displaying high-fidelity execution status and price discovery for block trades. The design suggests robust market microstructure and capital efficiency.](https://options.greeks.live/wp-content/uploads/2025/07/principal-rfq-engine-for-digital-asset-derivatives-best-execution-1.jpg)

The Margin Period of Risk is the time horizon over which initial margin must cover potential future exposure from a counterparty default.

- 
### [What Are the Primary Hedging Instruments for Common OTC Derivatives?](https://options.greeks.live/question/what-are-the-primary-hedging-instruments-for-common-otc-derivatives/)
![A multi-faceted geometric object with varied reflective surfaces rests on a dark, curved base. It embodies complex RFQ protocols and deep liquidity pool dynamics, representing advanced market microstructure for precise price discovery and high-fidelity execution of institutional digital asset derivatives, optimizing capital efficiency.](https://options.greeks.live/wp-content/uploads/2025/07/multi-faceted-institutional-digital-asset-derivatives-execution-infrastructure.jpg)

Hedging OTC derivatives is the systematic neutralization of bespoke, multi-faceted risks using a dynamic portfolio of liquid instruments.

- 
### [What Are the Primary Risk Factors When Automating RFQ Protocols?](https://options.greeks.live/question/what-are-the-primary-risk-factors-when-automating-rfq-protocols/)
![A macro view reveals a robust metallic component, signifying a critical interface within a Prime RFQ. This secure mechanism facilitates precise RFQ protocol execution, enabling atomic settlement for institutional-grade digital asset derivatives, embodying high-fidelity execution.](https://options.greeks.live/wp-content/uploads/2025/07/core-secure-institutional-digital-asset-derivatives-rfq-trade-system-element.jpg)

Automating RFQ protocols requires a systematic approach to managing information leakage and adverse selection risks for optimal execution.

- 
### [In What Ways Can Wrong-Way Risk Materialize and How Does It Affect Collateral Valuation?](https://options.greeks.live/question/in-what-ways-can-wrong-way-risk-materialize-and-how-does-it-affect-collateral-valuation/)
![A multi-faceted digital asset derivative, precisely calibrated on a sophisticated circular mechanism. This represents a Prime Brokerage's robust RFQ protocol for high-fidelity execution of multi-leg spreads, ensuring optimal price discovery and minimal slippage within complex market microstructure, critical for alpha generation.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-precision-2.jpg)

Wrong-Way Risk is a toxic correlation between counterparty default and exposure, systemically eroding collateral protection.

- 
### [What Are the Strategic Flaws in VaR Based Margin Models?](https://options.greeks.live/question/what-are-the-strategic-flaws-in-var-based-margin-models/)
![A marbled sphere symbolizes a complex institutional block trade, resting on segmented platforms representing diverse liquidity pools and execution venues. This visualizes sophisticated RFQ protocols, ensuring high-fidelity execution and optimal price discovery within dynamic market microstructure for digital asset derivatives. It reflects capital efficiency and intelligent smart order routing.](https://options.greeks.live/wp-content/uploads/2025/07/principal-rfq-aggregation-digital-asset-derivative-execution-optimization.jpg)

VaR-based margin models contain architectural flaws that understate tail risk and amplify systemic shocks through procyclicality.

- 
### [How Do Smart Trading Systems Quantify and Decompose Market Risk?](https://options.greeks.live/question/how-do-smart-trading-systems-quantify-and-decompose-market-risk/)
![Abstract institutional-grade Crypto Derivatives OS. Metallic trusses depict market microstructure. Transparent discs symbolize liquidity pools, implied volatility, and dark pools, crucial for RFQ protocols and block trade execution. This visualizes high-fidelity execution and price discovery for digital asset derivatives.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-market-microstructure-optimizing-rfq-protocols-for-high-fidelity-execution-via-prime-os.jpg)

Smart trading systems quantify risk via statistical models and decompose it by attributing volatility to specific, measurable market factors.

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---

**Original URL:** https://options.greeks.live/question/can-a-bank-strategically-combine-the-standardised-and-internal-model-approaches-across-different-desks/
