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Spread Risk Specific Exposure Treatment

Calculate the Effective Stress instantly.

€
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Effective Stress

0.0%

1Step 1

Recognised Specific Exposure

Recognised Specific Exposure=min⁡(Specific Exposure Qualifies (0/1),Evidence Present (0/1))\textit{Recognised Specific Exposure} = \min(\textit{Specific Exposure Qualifies (0/1)}, \textit{Evidence Present (0/1)})
2Step 2

spread_specific_exposure_non_exempt_factor

spread_specific_exposure_non_exempt_factor=1−Recognised Specific Exposure\textit{spread\_specific\_exposure\_non\_exempt\_factor} = 1 - \textit{Recognised Specific Exposure}
3Step 3

Effective Stress

Effective Stress=Base Stress×spread_specific_exposure_non_exempt_factor\textit{Effective Stress} = \textit{Base Stress} \times \textit{spread\_specific\_exposure\_non\_exempt\_factor}
4Step 4

Recognised Exempt Amount

Recognised Exempt Amount=Exposure Value×Recognised Specific Exposure\textit{Recognised Exempt Amount} = \textit{Exposure Value} \times \textit{Recognised Specific Exposure}

Understand the Spread Risk Specific Exposure Treatment

Overview

This calculator is an atomistic spread-risk building block for specific-exposure treatment.[1] It applies an evidence-gated exemption flag to a prepared base stress.

Input Terms

  • Exposure Value: The exposure amount being tested.
  • Base Stress: The stress percentage before specific-exposure recognition.
  • Specific Exposure Qualifies: A binary flag for whether the exposure qualifies for the specific treatment.
  • Evidence Present: A binary flag for whether the qualification has supporting evidence.

Technical Rationale

Specific exposure recognition should not be hidden inside the main spread calculator. This page separates the treatment decision from the instrument charge so exemptions stay auditable.

Important Notes

  • Calculator placement: This is a calculator, not an engine. It owns one exemption/treatment formula gate.
  • Prepared-input note: Qualification and evidence flags are prepared inputs. They should not be treated as source-system proof.
  • Scope boundary: This page does not classify the instrument or calculate the base stress.

Sources

  1. Delegated Regulation (EU) 2015/35 - Art. 180 (Specific exposures) - EIOPA

Default values are illustrative sample inputs for navigation, training, and QA. Replace them with controlled data before using the result in capital analysis, governance, or reporting decisions.