> ## Documentation Index
> Fetch the complete documentation index at: https://docs.activeviam.com/llms.txt
> Use this file to discover all available pages before exploring further.

# About the solution

> Overview of the Atoti CVA Risk Capital solution, covering key features, integration with other Atoti solutions, MAR50 scope and exclusions, and core concepts for teams implementing or using the solution

## Introduction

ActiveViam has undertaken an initiative to provide a solution for
the minimum capital requirements for CVA risk as per Chapter MAR50 of
the Consolidated Basel Framework Effective as of 01 Jan 2022[1](#fn:1). This
is the result of regulatory monitoring, client consultations, and
development work.

## Synopsis

Here’s a short summary of features of Atoti CVA Risk Capital:

* Aggregation logic to compute CVA risk capital requirement in
  accordance with regulation:

  * Transparency of calculation is achieved by including interim
    calculations as measures in a pivot table (or tabular view) of
    the cube for validation/analysis purposes;
  * Measures can be drilled in to reveal hedges and netting sets
    contributing into the risk charge.
  * Multiple supervisory parameters sets can be supported for
    different jurisdictions.
  * BA-CVA vs SA-CVA: compare the results of the two methodologies
    side-by-side
* Pre-defined data model with the possibility to adapt to the bank’s
  own source formats.
* Possibility to have a pre-defined cube with all measures set in
  advance or let users dynamically select measures and instantiate
  them on-the-fly in the cubes (ActiveMeasures);
* Flexible set of attributes and dimensions (hierarchies, dimensions,
  levels of the cube structure);
* What-if simulations:

  * Override supervisory parameter values and re-aggregate capital
    numbers on the fly – in a so called “what-if” experimental
    branch.
  * Upload stress test sensitivities into a “what-if” branch and
    evaluate stress scenario impact

## Synergies with other solutions

Other Solutions in the ActiveViam products family share the same
technology and similar data model, hence these synergies may be
realized:

* Analyzing CVA portfolio Greek-based PL and Value-at-Risk in the Market Risk Solution,
* Collecting comprehensive CVA portfolio market risk capital and
  sensitivities, by leveraging CVA Risk Capital cube with FRTB-TB
  cubes to see capital treatment of ineligible hedges (if any).

## MAR50 exclusions

Some aspects of the MAR50 are not included in Atoti CVA Risk Capital. This section highlights those topics.

### Atoti Server is not a risk engine

Atoti Server is not a risk engine. There is no functionality or software
in Atoti CVA Risk Capital for the calculation of credit risk
exposures and sensitivities. In all cases it is assumed that the client
already has a risk engine or trade booking system that can generate the
raw data (sensitivities, notionals, EAD, etc). Additionally, it is
assumed that upstream systems are validating hedge eligibility.

### Atoti Server is not a tool for data management

There is no functionality to convert bank’s static data into attributes,
required by regulation, such as Sectors, Credit quality, relationship to
counterparty, etc. The Solution expects to receive this meta-data as
input.

## Solution concepts

Atoti Business Solutions are projects that contain business logic,
implementation best practices and software code to enable a faster
time-to-market and help clients confidently address use cases such as
regulations. The reference implementations are built on and require
Atoti Server, ActiveMonitor, and Atoti UI.

Clients may choose to use a Solution "as is" by conforming to
published data input file structures and data stores. Alternatively,
clients may use the Solution purely as a starting point for building
a suitable system with additional functionality.

Source code is delivered and IT users are free to make
derivative works (which become the client’s IP) to adapt to their data
sources and requirements.

***

1. referred to as ‘MAR50’ in this document. Link to the Regulatory document: [https://www.bis.org/basel\_framework/chapter/MAR/50.htm](https://www.bis.org/basel_framework/chapter/MAR/50.htm)