11
Standard formula
11.1
The PRA expects firms using the standard formula to explain clearly within the ORSA report where the firm’s own risk profile deviates from the standard formula assumptions, and conclude whether the standard formula is appropriate for the risks in the business and is representative of its risk profile. The PRA expects firms to consider any material deviations of the risk profile from the standard formula, and to demonstrate how the ORSA framework will be used by the firm to monitor, on an ongoing basis, the appropriateness of the standard formula.
- 25/11/2016