 Standardized approach (counterparty credit risk)

The Standardized Approach for Counterparty Credit Risk (SA-CCR) is a framework established by the Basel Committee on Banking Supervision (BCBS) to calculate the counterparty credit risk (CCR) exposure that banks face when engaging in derivative transactions. It is designed to provide a more risk-sensitive and standardized method for measuring and managing counterparty credit risk compared to previous models.