Setting Up Rule Sets

This section provides an overview of rule sets and discusses how to define Risk-Weighted Capital rule sets.

Pages Used to Set Up Rule Sets

Page Name	Definition Name	Navigation	Usage
RWC RuleSet	RWC_RULESET_DEFN	select Financial Services Industries, then select Risk-Weighted Capital Rules, then select Risk-Weighted Capital Rules, then select Risk RuleSet	Define rule sets for a forecasted pool, ledger account, product, or position.
RWC RuleSet - Notes	RWC_RULES_NOTES	On the RWC RuleSet page, select the Notes tab.	Enter text related to the defined rule set.

Understanding Rule Sets

Set up rule sets to group the risk weight rules and risk functions for specific products or forecasted pools, to group risk functions for treasury positions, or to group ledger account balances.

For example, on your loan products, you might have rules for credit risk, rate risk, operational risk, and market risk. Rather than assigning four different rules to your loans, you can group these four rules under one rule set and attach that rule set to your loan products.

RWC RuleSet Page

Use the RWC RuleSet page (RWC_RULESET_DEFN) to define rule sets for a forecasted pool, ledger account, product, or position.

Navigation

select Financial Services Industries, then select Risk-Weighted Capital Rules, then select Risk-Weighted Capital Rules, then select Risk RuleSet

Image: RWC RuleSet page

This example illustrates the fields and controls on the RWC RuleSet page. You can find definitions for the fields and controls later on this page.

RWC Data Source

Specify the type of balance to assign to this rule. Options are: Forecasted Pools, Product Balances, Ledger Balances, andTreasury Position Balances.

Risk-Weighted Capital Rules

Specify the rules to include in this rule set.

Risk Type

Select a predefined risk type.

You can use the Risk Type Definition page to add or modify a risk type.

Calculation Type

Select one of the calculation type options: Weights orFunction.

RWC Rule Code

Select from the predefined RWC Rule Codes.