37 Things to Remember

This section contains additional information.

• The Base Run ID selection has been added from OFS LLFP Release 8.1.1.1.0 version onwards. This enables a complete data load for a preferred Load Run ID selection. For more information, see the Setting Up Setup Master Table.
• The Basel Reclassification rule is for reporting purposes only and does not have any effect on method selection or calculation.
• LLFP application expects only one internal rating for one external rating. Many External ratings can be mapped to one internal rating.
• The provision matrix method is assigned for a specific condition and as the default method for all unless otherwise specified.
• If the cash flow is given as a download, then all accounts are treated individually.
• The overnight rate, 1 Day, is mandatory for Interest Rate Curve.
• The provision Matrix method can be assigned directly through the Methodology Assignment Rule in addition to accounts assigned for Cash Flows or Forward exposure. But without cash flows, the application will overwrite the methodology to the provision matrix.
• Method override also checks for accounts having different product types but sharing the same collateral. Such accounts are not assigned any provision calculation method and, hence, the Provision amount is not calculated for it.
• For the Poisson process, the desired frequency period must be less than the input matrix frequency period.
• To calculate the proper coefficient, no consecutive interest rates in the historical interest rate curve table must be precisely the same.
• A maximum of 100 data points, interest rate points, can be given for interpolation coefficient calculation.
• LLFP does not handle the partial allocation of mitigant value to an account, that is 100% of the mitigant value is considered to be associated with the account.
• A threshold can only be applied at product-type, Legal Entity, and Currency levels.