+(iv) Aggregating the IRS into the ARS
---+58. Each IRS of the risk indicator ‘ j ’ for an institution ‘i’ should be multiplied by the risk IW …

(iv) Aggregating the IRS into the ARS

1. Overview

58. Each IRS of the risk indicator ‘ j ’ for an institution ‘i’ should be multiplied by the risk IW …

Each IRS of the risk indicator ‘ j ’ for an institution ‘i’ should be multiplied by the risk IW assigned to a specific risk indicator ‘ j ’ . The weighted IRS should then be summed up in an ARS according to the following formula:

Where :

𝐴𝑅𝑆 𝑖 = 𝑚 ∑𝐼𝑊 𝑗 𝑗=1

𝑚 ∑𝐼𝑊 𝑗 ∗𝐼𝑅𝑆 𝑖𝑗 𝑗=1 = 100%

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

Requirements
Source	Requirement

3. Related Standards

Standards
Source	Requirement

EBA - Published by the European Banking Authority at https://www.eba.europa.eu/