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Component: IS-B-RA-CL
Component Name: Default Risk and Limit System
Description: Describes the period of time that is critical for valuing trading transactions for the purpose of determining potential changes in their market value.
Key Concepts: The market value change period is a component of the IS-B-RA-CL Default Risk and Limit System. It is a period of time during which the market value of a financial instrument is monitored and compared to its original value. If the market value changes significantly, the system will trigger an alert to notify the user. How to use it: The market value change period can be set up in the IS-B-RA-CL Default Risk and Limit System. The user can specify the length of the period, as well as the threshold for triggering an alert. The system will then monitor the market value of the financial instrument during this period and alert the user if it changes significantly. Tips & Tricks: It is important to set up the market value change period correctly in order to ensure that any significant changes in market value are detected. It is also important to set a realistic threshold for triggering an alert, as too low a threshold may result in too many false positives. Related Information: The IS-B-RA-CL Default Risk and Limit System also includes other components such as credit limit monitoring, collateral monitoring, and liquidity monitoring. These components can be used together with the market value change period to provide a comprehensive risk management solution.