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User Guide

Welcome to the comprehensive user guide for the UK Credit Risk RWA Calculator. This guide provides detailed information on regulatory frameworks, calculation methodologies, and exposure class treatments.

Guide Structure

This guide is organized into the following sections:

Interactive UI

Run calculations without writing code using the web-based interface:

  • Interactive UI - Web-based calculator, results explorer, and regulatory reference

Regulatory Frameworks

Understand the regulatory requirements that govern RWA calculations:

Calculation Methodology

Learn how RWA is calculated under different approaches:

Exposure Classes

Understand how different exposures are classified and treated:

Configuration

Quick Reference

Key Formulas

RWA = EAD × Risk Weight

RWA = K × 12.5 × EAD × MA × [1.06 if CRR]

Where K is the capital requirement from the IRB formula.

RWA = EAD × Slotting Risk Weight

Approach Availability by Exposure Class

Exposure Class SA F-IRB A-IRB Slotting
Central Govt / Central Bank ✅ ✅ ✅
Institution ✅ ✅ ✅
Corporate ✅ ✅ ✅
Corporate SME ✅ ✅ ✅
Retail ✅ ✅
Specialised Lending ✅ ✅
Equity ✅ ✅
Defaulted ✅ ✅ ✅

For Different Users

Risk & Audit Teams

Start with: 1. Interactive UI - Run calculations without code 2. Regulatory Frameworks - Understand the rules 3. Calculation Methodology - How calculations work 4. Framework Comparison - CRR vs Basel 3.1 differences

Business Users

Start with: 1. Interactive UI - Run calculations through the web interface 2. Key Concepts - Terminology 3. Exposure Classes - How exposures are classified 4. Configuration Guide - Setting up calculations

Technical Users

See also: - Architecture Guide - API Reference - Data Model