Capital and Credit Risk Solutions Driven by Basel and Capital Requirements Regulation (CRR2/3)

Comprehensive solutions for Basel and capital requirements driven by CRR2/3 and credit risk regulatory requirements globally, including FRTB, SA-CCR, large exposures

Changing Basel Landscape + Complex Risk Calculations + Dispersed Data and Models = Risk, Complexity, and Costs

AxiomSL’s solutions and reports on ControllerView ― powered by its extensible data dictionaries ― deliver a consistent, transparent, automated approach to capital and credit data management, calculation, and reporting.

AxiomSL | Solutions - Capital and Credit Risk

Managing The Interdependencies Across Counterparties, Credit Risk Analytics, And Capital Reporting


As financial institutions take their Basel journeys, AxiomSL is providing comprehensive solutions for current and evolving Basel and Capital Requirements Regulation (CRR) driven needs, including:


Operational and computational challenges will be created by the new market risk regime.

Improving Fundamental Review of the Trading Book (FRTB) capital requirements means that the application of Standard Approach (SA) rules will need to be consistent – with SA now applicable to all financial institutions – and achieving consistency across institutions will be complicated to achieve.

Credit Risk – Revised SA and IRB

The new credit risk framework includes two different methodologies with different sets of calculations.

Both methodologies and calculation sets – SA and Internal Ratings Based (IRB) – will need to be leveraged for efficient reporting, as well as for conforming with the output floor.

Furthermore, the framework for securitization has been rewritten, and will now involve increased complexity both in calculations and reports.

Output Floor

The output floor has been set at 72.5% of the standardized Risk-Weighted Assets (RWA).

This, combined with upcoming changes to RWA calculations will pose both methodological, optimization and reporting challenges for financial institutions.

A holistic data management and calculation process across an enterprise will be necessary to adequately address this.


As part of Basel IV, financial institutions around the world will be required to use a new methodology to calculate their Standardized Approach for Counterparty Credit Risk (SA-CCR) exposure and the corresponding capital reserves needed to mitigate this risk.

Large Exposures Revised Framework

According to changing large exposure guidelines, financial institutions are being required to do more calculations, more often, and they must monitor daily changes to exposures.

Consequently, the new calculation methodology may reduce the amount of risk an institution is able to take on.

Global Solutions for Basel and Capital Requirements

AxiomSL’s Robust Capabilities for Basel and Capital Requirements Regulation (CRR2/3)-Driven Regulatory Reporting

AxiomSL’s Robust Capabilities for Basel and CRR2-Driven Capital Requirements

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