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SCR - intangible assets module

M

Mbotha

Member
The SCR calculation only goes into details for the insurance, market and default risk modules. Can I assume that the calculation for the intangible assets module is similar to that for insurance and market risk?
 
Yes, similar: we need to consider the risk that the value of the intangible asset decreases and then hold enough capital to cover that shortfall at the required confidence level. I believe that the SCR component for the intangible assets module within the standard formula is just a given % of the value of the intangible assets, but you don't need to know this for the exam as it is not specified in the Core Reading.
 
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