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Health Insurance (prudential standard) determination No. 2 of 2024
Asset Risk ChargeAsset Risk Charge
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Asset Risk Charge
- The Asset Risk Charge relates to the risk of adverse movements in the value of on-balance sheet and off-balance sheet exposures. The method for determining the Asset Risk Charge is set out in Prudential Standard HPS 114 Capital Adequacy: Asset Risk Charge (HPS 114). Asset risk can be derived from a number of sources, including market risk and credit risk. For the purposes of this Prudential Standard and HPS 114, assets and exposures must be valued in accordance with the relevant reporting standards made under the Financial Sector (Collection of Data) Act 2001 (FSCODA).