This guide explains the FRTB Standardised Approach from first principles through implementation. Start with the architecture, then follow the series through risk factors, sensitivities, prescribed diversification, default risk, residual risk, data, controls and jurisdictional implementation.
How to use this guide
Readers new to FRTB should begin with the architecture, SBM and Delta articles. Practitioners can move directly to the relevant risk class or implementation topic. Every page links back to this hub and to adjacent articles, creating a complete crawlable learning path.
All 40 FRTB articles
- FRTB Standardised Approach: The Complete Architecture in Plain English
FRTB Standardised Approach explained clearly: mechanics, practical example, controls and common FRTB implementation mistakes for banking risk professionals
- Trading Book vs Banking Book Under FRTB: A Practical Boundary Guide
Trading Book vs Banking Book Under FRTB explained clearly: mechanics, practical example, controls and common FRTB implementation mistakes for banking risk
- Sensitivities-Based Method Explained: From Position to Capital
Sensitivities-Based Method Explained explained clearly: mechanics, practical example, controls and common FRTB implementation mistakes for banking risk pro
- FRTB Delta Risk Without the Complexity
FRTB Delta Risk Without the Complexity explained clearly: mechanics, practical example, controls and common FRTB implementation mistakes for banking risk p
- FRTB Vega Risk: What Volatility Sensitivity Really Measures
FRTB Vega Risk explained clearly: mechanics, practical example, controls and common FRTB implementation mistakes for banking risk professionals.
- FRTB Curvature Risk: Capturing the Bend in Option Prices
FRTB Curvature Risk explained clearly: mechanics, practical example, controls and common FRTB implementation mistakes for banking risk professionals.
- Why FRTB Uses Three Correlation Scenarios
Why FRTB Uses Three Correlation Scenarios explained clearly: mechanics, practical example, controls and common FRTB implementation mistakes for banking ris
- FRTB Buckets and Correlations: How Diversification Is Controlled
FRTB Buckets and Correlations explained clearly: mechanics, practical example, controls and common FRTB implementation mistakes for banking risk profession
- FRTB Risk Weights: Turning Sensitivities Into Regulatory Shocks
FRTB Risk Weights explained clearly: mechanics, practical example, controls and common FRTB implementation mistakes for banking risk professionals.
- GIRR Delta Under FRTB: Curves, Tenors and Currencies
GIRR Delta Under FRTB explained clearly: mechanics, practical example, controls and common FRTB implementation mistakes for banking risk professionals.
- GIRR Vega and Curvature: Options on Interest Rates
GIRR Vega and Curvature explained clearly: mechanics, practical example, controls and common FRTB implementation mistakes for banking risk professionals.
- Credit Spread Risk for Non-Securitisations Under FRTB
Credit Spread Risk for Non-Securitisations Under FRTB explained clearly: mechanics, practical example, controls and common FRTB implementation mistakes for
- Securitisation CSR Outside the Correlation Trading Portfolio
Securitisation CSR Outside the Correlation Trading Portfolio explained clearly: mechanics, practical example, controls and common FRTB implementation mista
- FRTB Correlation Trading Portfolio: CSR and Eligibility
FRTB Correlation Trading Portfolio explained clearly: mechanics, practical example, controls and common FRTB implementation mistakes for banking risk profe
- Equity Delta Under FRTB: Spot, Repo and Bucket Mapping
Equity Delta Under FRTB explained clearly: mechanics, practical example, controls and common FRTB implementation mistakes for banking risk professionals.
- Equity Vega and Curvature for Options and Structured Products
Equity Vega and Curvature for Options and Structured Products explained clearly: mechanics, practical example, controls and common FRTB implementation mist
- Commodity Risk Under FRTB: Basis, Location and Maturity
Commodity Risk Under FRTB explained clearly: mechanics, practical example, controls and common FRTB implementation mistakes for banking risk professionals.
- Foreign Exchange Risk Under FRTB: Currencies, Reporting Currency and Options
Foreign Exchange Risk Under FRTB explained clearly: mechanics, practical example, controls and common FRTB implementation mistakes for banking risk profess
- Credit Spread Delta vs Default Risk Charge: Do Not Confuse Them
Credit Spread Delta vs Default Risk Charge explained clearly: mechanics, practical example, controls and common FRTB implementation mistakes for banking ri
- FRTB Default Risk Charge: Jump-to-Default From First Principles
FRTB Default Risk Charge explained clearly: mechanics, practical example, controls and common FRTB implementation mistakes for banking risk professionals.
- DRC for Non-Securitisations: Netting and Hedge Benefit
DRC for Non-Securitisations explained clearly: mechanics, practical example, controls and common FRTB implementation mistakes for banking risk professional
- DRC for Securitisations: Why Tranches Need Separate Treatment
DRC for Securitisations explained clearly: mechanics, practical example, controls and common FRTB implementation mistakes for banking risk professionals.
- Residual Risk Add-On Under FRTB: The Capital Charge Beyond Greeks
Residual Risk Add-On Under FRTB explained clearly: mechanics, practical example, controls and common FRTB implementation mistakes for banking risk professi
- Exotic Underlyings and Other Residual Risks: An RRAO Decision Guide
Exotic Underlyings and Other Residual Risks explained clearly: mechanics, practical example, controls and common FRTB implementation mistakes for banking r
- Index and Multi-Underlying Instruments Under FRTB
Index and Multi-Underlying Instruments Under FRTB explained clearly: mechanics, practical example, controls and common FRTB implementation mistakes for ban
- FRTB Sensitivity Calculation: Finite Differences, Units and Signs
FRTB Sensitivity Calculation explained clearly: mechanics, practical example, controls and common FRTB implementation mistakes for banking risk professiona
- Risk-Factor Mapping Under FRTB: The Hidden Capital Engine
Risk-Factor Mapping Under FRTB explained clearly: mechanics, practical example, controls and common FRTB implementation mistakes for banking risk professio
- Netting Under FRTB: Where Offsets Are Allowed and Where They Stop
Netting Under FRTB explained clearly: mechanics, practical example, controls and common FRTB implementation mistakes for banking risk professionals.
- When the FRTB Aggregation Formula Needs a Safeguard
When the FRTB Aggregation Formula Needs a Safeguard explained clearly: mechanics, practical example, controls and common FRTB implementation mistakes for b
- A Worked FRTB SBM Example: From Three Trades to Risk-Class Capital
A Worked FRTB SBM Example explained clearly: mechanics, practical example, controls and common FRTB implementation mistakes for banking risk professionals.
- FRTB Data Lineage: From Trade Capture to Regulatory Capital
FRTB Data Lineage explained clearly: mechanics, practical example, controls and common FRTB implementation mistakes for banking risk professionals.
- FRTB Controls: A Practical First and Second Line Framework
FRTB Controls explained clearly: mechanics, practical example, controls and common FRTB implementation mistakes for banking risk professionals.
- Reconciling Front-Office Greeks to FRTB Sensitivities
Reconciling Front-Office Greeks to FRTB Sensitivities explained clearly: mechanics, practical example, controls and common FRTB implementation mistakes for
- FRTB Change Management: Regulatory Parameters Without Production Surprises
FRTB Change Management explained clearly: mechanics, practical example, controls and common FRTB implementation mistakes for banking risk professionals.
- FRTB Reporting and Disclosure: Explaining Capital Movement
FRTB Reporting and Disclosure explained clearly: mechanics, practical example, controls and common FRTB implementation mistakes for banking risk profession
- FRTB Model Validation for the Standardised Approach
FRTB Model Validation for the Standardised Approach explained clearly: mechanics, practical example, controls and common FRTB implementation mistakes for b
- FRTB Standardised Approach vs Internal Models Approach
FRTB Standardised Approach vs Internal Models Approach explained clearly: mechanics, practical example, controls and common FRTB implementation mistakes fo
- EU FRTB Under CRR3: What Implementation Teams Should Watch
EU FRTB Under CRR3 explained clearly: mechanics, practical example, controls and common FRTB implementation mistakes for banking risk professionals.
- UK FRTB Implementation: ASA, SSA and the 2027–2028 Timeline
UK FRTB Implementation explained clearly: mechanics, practical example, controls and common FRTB implementation mistakes for banking risk professionals.
- FRTB Implementation Roadmap: From Gap Analysis to Stable Production
FRTB Implementation Roadmap explained clearly: mechanics, practical example, controls and common FRTB implementation mistakes for banking risk professional
Author and sources
The series is written by Jonas (Yonas) Mohamed Osman Abdelghafour. Articles distinguish the Basel framework from EU and UK implementation and link directly to primary sources from the Basel Committee, European Banking Authority and Prudential Regulation Authority.