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# Idiosyncratic component

<table><tr><th>Description</th><td>Second term of the hedged BA-CVA capital formula, that aggregates the idiosyncratic components of CVA risk arising from the bank’s counterparties and the single-name hedges</td></tr><tr><th>Reference</th><td><a href="https://www.bis.org/basel_framework/chapter/MAR/50.htm?inforce=20230101&published=20200708#paragraph_MAR_50_20230101_50_22">\[MAR50.22]</a></td></tr><tr><th>Notation</th><td>$(1-\rho^2)\cdot \sum_c (SCVA_c - SNH_c)^2$</td></tr></table>