Generic Questions

The second section consists of questions that the user has to respond to. Once the user responds to the questions, the response is compared with the score set by the administrator, and a final score is arrived at.

These questions are not particular to any one instrument type and are intended to capture management's attitude or outlook towards hedge management as of the assessment date. These questions also reflect a degree of judgment with which they will have to be responded to by the user and therefore cannot be set to be answered through the application of logic.

The administrative user assigns a score to each option of all questions. The administrative user also sets the threshold score beyond which it is considered that credit risk is not dominant. For example, if the Aggregate threshold value set by the administrative user is 80%, and the user's response gets a score of 85%, then it is determined that Credit risk is Not Dominant. If the user's response is less than 80%, then Credit Risk is determined to be Dominant.