Go back to ..
Twin Peaks Approach
main section
| Sub Sections | |
| Please browse our Regulation Information |
Realistic Peak
Home >Integrated-Prudential-Sourcebook > Twin-Peaks-Approach > Realistic-Peak >
Background
This is an assessment of 'expected' liabilities -link- arising from contractual guarantees as well as a provision for expected discretionary payments such as future annual and terminal bonuses.
In addition a firm would calculate an explicit risk capital margin on top of the realistic provisions -link- to help address the risk that market and economic conditions may not turn out as expected.
Please use the sub sections links on the left or the content links to find out more about Realistic Peak.