> ## Documentation Index
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# Systematic component

<table><tr><th>Description</th><td>first term of the hedged BA-CVA capital formula, that aggregates the systematic components of CVA risk cc arising from the bank’s counterparties, the single-name hedges and the index 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>Formula</th><td>$\left( \rho \cdot \sum_{c} (SCVA_c - SNH_c) - IH\right)^2$</td></tr></table>