Market Risk, Credit Risk and Operational Risks

We have used the term “trading desk” constantly since Article 1 — it is the level at which Internal Models […]

Part A covered what market risk is and how far its scope reaches. Part B answers a more practical question:

We now have the boundary (RBC25) and the vocabulary (MAR10) behind us. MAR11 is where the standard finally defines market

Part A of this glossary covered the foundational vocabulary and the risk metric terms — sensitivity, delta, vega, curvature, VaR

With RBC25 — the trading book and banking book boundary chapter — now fully covered, the standard pauses before getting

This final part of our internal risk transfer mini-series covers two remaining pieces: transfers that happen entirely within the trading

Where This Fits: Not a 4th or 5th VaR Method It’s worth being precise about this before anything else, because

Part B covered how internal risk transfer of credit and equity risk move from the banking book to the trading

Part A of this mini-series established the basics: an internal risk transfer is just an internal record of moving risk,

In the last article, we mapped the boundary between the trading book and the banking book — which instruments belong