text:
This chapter sets out the internal models method for counterparty credit risk.
A bank (meaning the individual legal entity or a group) that wishes to adopt an internal models method to measure exposure or exposure at default (EAD) for regulatory capital purposes must seek approval from its supervisor. The internal models method is available both for banks that adopt the internal ratings-based approach to credit risk and for banks for which the standardised approach to credit risk applies to all of their credit risk exposures. The bank must meet all of the requirements given in CRE53.6 to CRE53.60 and must apply the method to all of its exposures that are subject to counterparty credit risk, except for long settlement transactions.
A bank may also choose to adopt an internal models method to measure counterparty credit risk (CCR) for regulatory capital purposes for its exposures or EAD to only over-the-counter (OTC) derivatives, to only securities financing transactions (SFTs), or to both, subject to the appropriate recognition of netting specified in CRE53.61 to CRE53.71. The bank must apply the method to all relevant exposures within that category, except for those that are immaterial in size and risk. During the initial implementation of the internal models method, a bank may use the Standardised Approach for counterparty credit risk for a portion of its business. The bank must submit a plan to its supervisor to bring all material exposures for that category of transactions under the internal models method.
For all OTC derivative transactions and for all long settlement transactions for which a bank has not received approval from its supervisor to use the internal models method, the bank must use the standardised approach to counterparty credit risk (SA-CCR, CRE52).
Exposures or EAD arising from long settlement transactions can be determined using either of the methods identified in this document regardless of the methods chosen for treating OTC derivatives and SFTs. In computing capital requirements for long settlement transactions banks that hold permission to use the internal ratings-based approach may opt to apply the risk weights under this Framework's standardised approach for credit risk on a permanent basis and irrespective to the materiality of such positions.
After adoption of the internal models method, the bank must comply with the above requirements on a permanent basis. Only under exceptional circumstances or for immaterial exposures can a bank revert to the standardised approach for counterparty credit risk for all or part of its exposure. The bank must demonstrate that reversion to a less sophisticated method does not lead to an arbitrage of the regulatory capital rules.
CCR exposure or EAD is measured at the level of the netting set as defined in CRE50 and CRE53.61 to CRE53.71. A qualifying internal model for measuring counterparty credit exposure must specify the forecasting distribution for changes in the market value of the netting set attributable to changes in market variables, such as interest rates, foreign exchange rates, etc. The model then computes the bank's CCR exposure for the netting set at each future date given the changes in the market variables. For margined counterparties, the model may also capture future collateral movements. Banks may include eligible financial collateral as defined in CRE22.34 and CRE55.2 in their forecasting distributions for changes in the market value of the netting set, if the quantitative, qualitative and data requirements for internal models method are met for the collateral.
As set out in RBC20.8, banks that use the internal models method must calculate credit RWA as the higher of two amounts, one based on current parameter estimates and one based on stressed parameter estimates. Specifically, to determine the default risk capital requirement for counterparty credit risk, banks must use the greater of the portfolio-level capital requirement (not including the credit valuation adjustment, or CVA, charge in MAR50) based on Effective expected positive exposure (EPE) using current market data and the portfolio-level capital requirement based on Effective EPE using a stress calibration. The stress calibration should be a single consistent stress calibration for the whole portfolio of counterparties. The greater of Effective EPE using current market data and the stress calibration should not be applied on a counterparty by counterparty basis, but on a total portfolio level.
To the extent that a bank recognises collateral in EAD via current exposure, a bank would not be permitted to recognise the benefits in its estimates of loss-given-default (LGD). As a result, the bank would be required to use an LGD of an otherwise similar uncollateralised facility. In other words, the bank would be required to use an LGD that does not include collateral that is already included in EAD.
Under the internal models method, the bank need not employ a single model. Although the following text describes an internal model as a simulation model, no particular form of model is required. Analytical models are acceptable so long as they are subject to supervisory review, meet all of the requirements set forth in this section and are applied to all material exposures subject to a CCR-related capital requirement as noted above, with the exception of long settlement transactions, which are treated separately, and with the exception of those exposures that are immaterial in size and risk.
Expected exposure or peak exposure measures should be calculated based on a distribution of exposures that accounts for the possible non-normality of the distribution of exposures, including the existence of leptokurtosis ("fat tails"), where appropriate.
When using an internal model, exposure amount or EAD is calculated as the product of alpha times Effective EPE, as specified below (except for counterparties that have been identified as having explicit specific wrong way risk – see CRE53.48):
Effective EPE is computed by estimating expected exposure (EEt) as the average exposure at future date t, where the average is taken across possible future values of relevant market risk factors, such as interest rates, foreign exchange rates, etc. The internal model estimates EE at a series of future dates t1, t2, t3…1 Specifically, "Effective EE" is computed recursively using the following formula, where the current date is denoted as t0 and Effective EEt0 equals current exposure:
In this regard, "Effective EPE" is the average Effective EE during the first year of future exposure. If all contracts in the netting set mature before one year, EPE is the average of expected exposure until all contracts in the netting set mature. Effective EPE is computed as a weighted average of Effective EE, using the following formula where the weights Δtk = tk – tk-1 allows for the case when future exposure is calculated at dates that are not equally spaced over time:
Supervisors have the discretion to require a higher alpha based on a bank's CCR exposures. Factors that may require a higher alpha include the low granularity of counterparties; particularly high exposures to general wrong-way risk; particularly high correlation of market values across counterparties; and other institution-specific characteristics of CCR exposures.
Banks may seek approval from their supervisors to compute internal estimates of alpha subject to a floor of 1.2, where alpha equals the ratio of economic capital from a full simulation of counterparty exposure across counterparties (numerator) and economic capital based on EPE (denominator), assuming they meet certain operating requirements. Eligible banks must meet all the operating requirements for internal estimates of EPE and must demonstrate that their internal estimates of alpha capture in the numerator the material sources of stochastic dependency of distributions of market values of transactions or of portfolios of transactions across counterparties (eg the correlation of defaults across counterparties and between market risk and default).
To this end, banks must ensure that the numerator and denominator of alpha are computed in a consistent fashion with respect to the modelling methodology, parameter specifications and portfolio composition. The approach used must be based on the bank's internal economic capital approach, be well-documented and be subject to independent validation. In addition, banks must review their estimates on at least a quarterly basis, and more frequently when the composition of the portfolio varies over time. Banks must assess the model risk and supervisors should be alert to the significant variation in estimates of alpha that arises from the possibility for mis-specification in the models used for the numerator, especially where convexity is present.
Where appropriate, volatilities and correlations of market risk factors used in the joint simulation of market and credit risk should be conditioned on the credit risk factor to reflect potential increases in volatility or correlation in an economic downturn. Internal estimates of alpha should take account of the granularity of exposures.
If the original maturity of the longest-dated contract contained in the set is greater than one year, the formula for effective maturity (M) in CRE32.47 is replaced with formula that follows, where dfk is the risk-free discount factor for future time period tk and the remaining symbols are defined above. Similar to the treatment under corporate exposures, M has a cap of five years.2
If the netting set is subject to a margin agreement and the internal model captures the effects of margining when estimating EE, the model's EE measure may be used directly in equation (2). Such models are noticeably more complicated than models of EPE for unmargined counterparties. As such, they are subject to a higher degree of supervisory scrutiny before they are approved, as discussed below.
An EPE model must also include transaction-specific information in order to capture the effects of margining. It must take into account both the current amount of margin and margin that would be passed between counterparties in the future. Such a model must account for the nature of margin agreements (unilateral or bilateral), the frequency of margin calls, the margin period of risk, the thresholds of unmargined exposure the bank is willing to accept, and the minimum transfer amount. Such a model must either model the mark-to-market change in the value of collateral posted or apply this Framework's rules for collateral.
For transactions subject to daily re-margining and mark-to-market valuation, a supervisory floor of five business days for netting sets consisting only of repo-style transactions, and 10 business days for all other netting sets is imposed on the margin period of risk used for the purpose of modelling EAD with margin agreements. In the following cases a higher supervisory floor is imposed:
For all netting sets where the number of trades exceeds 5000 at any point during a quarter, a supervisory floor of 20 business days is imposed for the margin period of risk for the following quarter.
For netting sets containing one or more trades involving either illiquid collateral, or an OTC derivative that cannot be easily replaced, a supervisory floor of 20 business days is imposed for the margin period of risk. For these purposes, "Illiquid collateral" and "OTC derivatives that cannot be easily replaced" must be determined in the context of stressed market conditions and will be characterised by the absence of continuously active markets where a counterparty would, within two or fewer days, obtain multiple price quotations that would not move the market or represent a price reflecting a market discount (in the case of collateral) or premium (in the case of an OTC derivative). Examples of situations where trades are deemed illiquid for this purpose include, but are not limited to, trades that are not marked daily and trades that are subject to specific accounting treatment for valuation purposes (eg OTC derivatives or repo-style transactions referencing securities whose fair value is determined by models with inputs that are not observed in the market).
In addition, a bank must consider whether trades or securities it holds as collateral are concentrated in a particular counterparty and if that counterparty exited the market precipitously whether the bank would be able to replace its trades.
If a bank has experienced more than two margin call disputes on a particular netting set over the previous two quarters that have lasted longer than the applicable margin period of risk (before consideration of this provision), then the bank must reflect this history appropriately by using a margin period of risk that is at least double the supervisory floor for that netting set for the subsequent two quarters.
For re-margining with a periodicity of N-days the margin period of risk should be at least equal to the supervisory floor, F, plus the N days minus one day. That is:
Banks using the internal models method must not capture the effect of a reduction of EAD due to any clause in a collateral agreement that requires receipt of collateral when counterparty credit quality deteriorates.
It is important that supervisory authorities are able to assure themselves that banks using models have counterparty credit risk management systems that are conceptually sound and implemented with integrity. Accordingly the supervisory authority will specify a number of qualitative criteria that banks would have to meet before they are permitted to use a models-based approach. The extent to which banks meet the qualitative criteria may influence the level at which supervisory authorities will set the multiplication factor referred to in CRE53.14 (Alpha) above. Only those banks in full compliance with the qualitative criteria will be eligible for application of the minimum multiplication factor. The qualitative criteria include:
The bank must conduct a regular programme of backtesting, ie an ex-post comparison of the risk measures generated by the model against realised risk measures, as well as comparing hypothetical changes based on static positions with realised measures. "Risk measures" in this context, refers not only to Effective EPE, the risk measure used to derive regulatory capital, but also to the other risk measures used in the calculation of Effective EPE such as the exposure distribution at a series of future dates, the positive exposure distribution at a series of future dates, the market risk factors used to derive those exposures and the values of the constituent trades of a portfolio.
The bank must carry out an initial validation and an on-going periodic review of its IMM model and the risk measures generated by it. The validation and review must be independent of the model developers.
The board of directors and senior management should be actively involved in the risk control process and must regard credit and counterparty credit risk control as an essential aspect of the business to which significant resources need to be devoted. In this regard, the daily reports prepared by the independent risk control unit must be reviewed by a level of management with sufficient seniority and authority to enforce both reductions of positions taken by individual traders and reductions in the bank's overall risk exposure.
The bank's internal risk measurement exposure model must be closely integrated into the day-to-day risk management process of the bank. Its output should accordingly be an integral part of the process of planning, monitoring and controlling the bank's counterparty credit risk profile.
The risk measurement system should be used in conjunction with internal trading and exposure limits. In this regard, exposure limits should be related to the bank's risk measurement model in a manner that is consistent over time and that is well understood by traders, the credit function and senior management.
Banks should have a routine in place for ensuring compliance with a documented set of internal policies, controls and procedures concerning the operation of the risk measurement system. The bank's risk measurement system must be well documented, for example, through a risk management manual that describes the basic principles of the risk management system and that provides an explanation of the empirical techniques used to measure counterparty credit risk.
An independent review of the risk measurement system should be carried out regularly in the bank's own internal auditing process. This review should include both the activities of the business trading units and of the independent risk control unit. A review of the overall risk management process should take place at regular intervals (ideally no less than once a year) and should specifically address, at a minimum:
The adequacy of the documentation of the risk management system and process;
The organisation of the risk control unit;
The integration of counterparty credit risk measures into daily risk management;
The approval process for counterparty credit risk models used in the calculation of counterparty credit risk used by front office and back office personnel;
The validation of any significant change in the risk measurement process;
The scope of counterparty credit risks captured by the risk measurement model;
The integrity of the management information system;
The accuracy and completeness of position data;
The verification of the consistency, timeliness and reliability of data sources used to run internal models, including the independence of such data sources;
The accuracy and appropriateness of volatility and correlation assumptions;
The accuracy of valuation and risk transformation calculations; and
The on-going validation of counterparty credit risk models, including backtesting, must be reviewed periodically by a level of management with sufficient authority to decide the course of action that will be taken to address weaknesses in the models.
Banks must document the process for initial and on-going validation of their IMM model to a level of detail that would enable a third party to recreate the analysis. Banks must also document the calculation of the risk measures generated by the models to a level of detail that would allow a third party to re-create the risk measures. This documentation must set out the frequency with which backtesting analysis and any other on-going validation will be conducted, how the validation is conducted with respect to dataflows and portfolios and the analyses that are used.
Banks must define criteria with which to assess their EPE models and the models that input into the calculation of EPE and have a written policy in place that describes the process by which unacceptable performance will be determined and remedied.
Banks must define how representative counterparty portfolios are constructed for the purposes of validating an EPE model and its risk measures.
When validating EPE models and its risk measures that produce forecast distributions, validation must assess more than a single statistic of the model distribution.
As part of the initial and on-going validation of an IMM model and its risk measures, the following requirements must be met:
A bank must carry out backtesting using historical data on movements in market risk factors prior to supervisory approval. Backtesting must consider a number of distinct prediction time horizons out to at least one year, over a range of various start (initialisation) dates and covering a wide range of market conditions.
Banks must backtest the performance of their EPE model and the model's relevant risk measures as well as the market risk factor predictions that support EPE. For collateralised trades, the prediction time horizons considered must include those reflecting typical margin periods of risk applied in collateralised/margined trading, and must include long time horizons of at least 1 year.
The pricing models used to calculate counterparty credit risk exposure for a given scenario of future shocks to market risk factors must be tested as part of the initial and on-going model validation process. These pricing models may be different from those used to calculate Market Risk over a short horizon. Pricing models for options must account for the nonlinearity of option value with respect to market risk factors.
An EPE model must capture transaction specific information in order to aggregate exposures at the level of the netting set. Banks must verify that transactions are assigned to the appropriate netting set within the model.
Static, historical backtesting on representative counterparty portfolios must be a part of the validation process. At regular intervals as directed by its supervisor, a bank must conduct such backtesting on a number of representative counterparty portfolios. The representative portfolios must be chosen based on their sensitivity to the material risk factors and correlations to which the bank is exposed. In addition, IMM banks need to conduct backtesting that is designed to test the key assumptions of the EPE model and the relevant risk measures, eg the modelled relationship between tenors of the same risk factor, and the modelled relationships between risk factors.
Significant differences between realised exposures and the forecast distribution could indicate a problem with the model or the underlying data that the supervisor would require the bank to correct. Under such circumstances, supervisors may require additional capital to be held while the problem is being solved.
The performance of EPE models and its risk measures must be subject to good backtesting practice. The backtesting programme must be capable of identifying poor performance in an EPE model's risk measures.
Banks must validate their EPE models and all relevant risk measures out to time horizons commensurate with the maturity of trades for which exposure is calculated using an internal models method.
The pricing models used to calculate counterparty exposure must be regularly tested against appropriate independent benchmarks as part of the on-going model validation process.
The on-going validation of a bank's EPE model and the relevant risk measures include an assessment of recent performance.
The frequency with which the parameters of an EPE model are updated needs to be assessed as part of the validation process.
Under the IMM, a measure that is more conservative than the metric used to calculate regulatory EAD for every counterparty, may be used in place of alpha times Effective EPE with the prior approval of the supervisor. The degree of relative conservatism will be assessed upon initial supervisory approval and at the regular supervisory reviews of the EPE models. The bank must validate the conservatism regularly.
The on-going assessment of model performance needs to cover all counterparties for which the models are used.
The validation of IMM models must assess whether or not the bank level and netting set exposure calculations of EPE are appropriate.
In order to be eligible to adopt an internal model for estimating EPE arising from CCR for regulatory capital purposes, a bank must meet the following operational requirements. These include meeting the requirements related to the qualifying standards on CCR Management, a use test, stress testing, identification of wrong-way risk, and internal controls.
The distribution of exposures generated by the internal model used to calculate effective EPE must be closely integrated into the day-to-day CCR management process of the bank. For example, the bank could use the peak exposure from the distributions for counterparty credit limits or expected positive exposure for its internal allocation of capital. The internal model's output must accordingly play an essential role in the credit approval, counterparty credit risk management, internal capital allocations, and corporate governance of banks that seek approval to apply such models for capital adequacy purposes. Models and estimates designed and implemented exclusively to qualify for the internal models method are not acceptable.
A bank must have a credible track record in the use of internal models that generate a distribution of exposures to CCR. Thus, the bank must demonstrate that it has been using an internal model to calculate the distributions of exposures upon which the EPE calculation is based that meets broadly the minimum requirements for at least one year prior to supervisory approval.
Banks employing the internal models method must have an independent control unit that is responsible for the design and implementation of the bank's CCR management system, including the initial and on-going validation of the internal model. This unit must control input data integrity and produce and analyse daily reports on the output of the bank's risk measurement model, including an evaluation of the relationship between measures of CCR risk exposure and credit and trading limits. This unit must be independent from business credit and trading units; it must be adequately staffed; it must report directly to senior management of the bank. The work of this unit should be closely integrated into the day-to-day credit risk management process of the bank. Its output should accordingly be an integral part of the process of planning, monitoring and controlling the bank's credit and overall risk profile.
Banks applying the internal models method must have a collateral management unit that is responsible for calculating and making margin calls, managing margin call disputes and reporting levels of independent amounts, initial margins and variation margins accurately on a daily basis. This unit must control the integrity of the data used to make margin calls, and ensure that it is consistent and reconciled regularly with all relevant sources of data within the bank. This unit must also track the extent of reuse of collateral (both cash and non-cash) and the rights that the bank gives away to its respective counterparties for the collateral that it posts. These internal reports must indicate the categories of collateral assets that are reused, and the terms of such reuse including instrument, credit quality and maturity. The unit must also track concentration to individual collateral asset classes accepted by the banks. Senior management must allocate sufficient resources to this unit for its systems to have an appropriate level of operational performance, as measured by the timeliness and accuracy of outgoing calls and response time to incoming calls. Senior management must ensure that this unit is adequately staffed to process calls and disputes in a timely manner even under severe market crisis, and to enable the bank to limit its number of large disputes caused by trade volumes.
The bank's collateral management unit must produce and maintain appropriate collateral management information that is reported on a regular basis to senior management. Such internal reporting should include information on the type of collateral (both cash and non-cash) received and posted, as well as the size, aging and cause for margin call disputes. This internal reporting should also reflect trends in these figures.
A bank employing the internal models method must ensure that its cash management policies account simultaneously for the liquidity risks of potential incoming margin calls in the context of exchanges of variation margin or other margin types, such as initial or independent margin, under adverse market shocks, potential incoming calls for the return of excess collateral posted by counterparties, and calls resulting from a potential downgrade of its own public rating. The bank must ensure that the nature and horizon of collateral reuse is consistent with its liquidity needs and does not jeopardise its ability to post or return collateral in a timely manner.
The internal model used to generate the distribution of exposures must be part of a counterparty risk management framework that includes the identification, measurement, management, approval and internal reporting of counterparty risk.3 This Framework must include the measurement of usage of credit lines (aggregating counterparty exposures with other credit exposures) and economic capital allocation. In addition to EPE (a measure of future exposure), a bank must measure and manage current exposures. Where appropriate, the bank must measure current exposure gross and net of collateral held. The use test is satisfied if a bank uses other counterparty risk measures, such as peak exposure or potential future exposure (PFE), based on the distribution of exposures generated by the same model to compute EPE.
A bank is not required to estimate or report EE daily, but to meet the use test it must have the systems capability to estimate EE daily, if necessary, unless it demonstrates to its supervisor that its exposures to CCR warrant some less frequent calculation. It must choose a time profile of forecasting horizons that adequately reflects the time structure of future cash flows and maturity of the contracts. For example, a bank may compute EE on a daily basis for the first ten days, once a week out to one month, once a month out to eighteen months, once a quarter out to five years and beyond five years in a manner that is consistent with the materiality and composition of the exposure.
Exposure must be measured out to the life of all contracts in the netting set (not just to the one year horizon), monitored and controlled. The bank must have procedures in place to identify and control the risks for counterparties where exposure rises beyond the one-year horizon. Moreover, the forecasted increase in exposure must be an input into the bank's internal economic capital model.
A bank must have in place sound stress testing processes for use in the assessment of capital adequacy. These stress measures must be compared against the measure of EPE and considered by the bank as part of its internal capital adequacy assessment process. Stress testing must also involve identifying possible events or future changes in economic conditions that could have unfavourable effects on a bank's credit exposures and assessment of the bank's ability to withstand such changes. Examples of scenarios that could be used are; (i) economic or industry downturns, (ii) market-place events, or (iii) decreased liquidity conditions.
Banks must have a comprehensive stress testing program for counterparty credit risk. The stress testing program must include the following elements:
Banks must ensure complete trade capture and exposure aggregation across all forms of counterparty credit risk (not just OTC derivatives) at the counterparty-specific level in a sufficient time frame to conduct regular stress testing.
For all counterparties, banks should produce, at least monthly, exposure stress testing of principal market risk factors (eg interest rates, FX, equities, credit spreads, and commodity prices) in order to proactively identify, and when necessary, reduce outsized concentrations to specific directional sensitivities.
Banks should apply multifactor stress testing scenarios and assess material non-directional risks (ie yield curve exposure, basis risks, etc) at least quarterly. Multiple-factor stress tests should, at a minimum, aim to address scenarios in which a) severe economic or market events have occurred; b) broad market liquidity has decreased significantly; and c) the market impact of liquidating positions of a large financial intermediary. These stress tests may be part of bank-wide stress testing.
Stressed market movements have an impact not only on counterparty exposures, but also on the credit quality of counterparties. At least quarterly, banks should conduct stress testing applying stressed conditions to the joint movement of exposures and counterparty creditworthiness.
Exposure stress testing (including single factor, multifactor and material non-directional risks) and joint stressing of exposure and creditworthiness should be performed at the counterparty-specific, counterparty group (eg industry and region), and aggregate bank-wide CCR levels.
Stress tests results should be integrated into regular reporting to senior management. The analysis should capture the largest counterparty-level impacts across the portfolio, material concentrations within segments of the portfolio (within the same industry or region), and relevant portfolio and counterparty specific trends.
The severity of factor shocks should be consistent with the purpose of the stress test. When evaluating solvency under stress, factor shocks should be severe enough to capture historical extreme market environments and/or extreme but plausible stressed market conditions. The impact of such shocks on capital resources should be evaluated, as well as the impact on capital requirements and earnings. For the purpose of day-to-day portfolio monitoring, hedging, and management of concentrations, banks should also consider scenarios of lesser severity and higher probability.
Banks should consider reverse stress tests to identify extreme, but plausible, scenarios that could result in significant adverse outcomes.
Senior management must take a lead role in the integration of stress testing into the risk management framework and risk culture of the bank and ensure that the results are meaningful and proactively used to manage counterparty credit risk. At a minimum, the results of stress testing for significant exposures should be compared to guidelines that express the bank's risk appetite and elevated for discussion and action when excessive or concentrated risks are present.
Banks must identify exposures that give rise to a greater degree of general wrong-way risk. Stress testing and scenario analyses must be designed to identify risk factors that are positively correlated with counterparty credit worthiness. Such testing needs to address the possibility of severe shocks occurring when relationships between risk factors have changed. Banks should monitor general wrong way risk by product, by region, by industry, or by other categories that are germane to the business. Reports should be provided to senior management and the appropriate committee of the Board on a regular basis that communicate wrong way risks and the steps that are being taken to manage that risk.
A bank is exposed to "specific wrong-way risk" if future exposure to a specific counterparty is highly correlated with the counterparty's probability of default. For example, a company writing put options on its own stock creates wrong-way exposures for the buyer that is specific to the counterparty. A bank must have procedures in place to identify, monitor and control cases of specific wrong way risk, beginning at the inception of a trade and continuing through the life of the trade. To calculate the CCR capital requirement, the instruments for which there exists a legal connection between the counterparty and the underlying issuer, and for which specific wrong way risk has been identified, are not considered to be in the same netting set as other transactions with the counterparty. Furthermore, for single-name credit default swaps where there exists a legal connection between the counterparty and the underlying issuer, and where specific wrong way risk has been identified, EAD in respect of such swap counterparty exposure equals the full expected loss in the remaining fair value of the underlying instruments assuming the underlying issuer is in liquidation. The use of the full expected loss in remaining fair value of the underlying instrument allows the bank to recognise, in respect of such swap, the market value that has been lost already and any expected recoveries. Accordingly LGD for advanced or foundation IRB banks must be set to 100% for such swap transactions.4 For banks using the Standardised Approach, the risk weight to use is that of an unsecured transaction. For equity derivatives, bond options, securities financing transactions etc referencing a single company where there exists a legal connection between the counterparty and the underlying company, and where specific wrong way risk has been identified, EAD equals the value of the transaction under the assumption of a jump-to-default of the underlying security. Inasmuch this makes re-use of possibly existing (market risk) calculations (for incremental risk charge) that already contain an LGD assumption, the LGD must be set to 100%.
Other operational requirements focus on the internal controls needed to ensure the integrity of model inputs; specifically, the requirements address the transaction data, historical market data, frequency of calculation, and valuation models used in measuring EPE.
The internal model must reflect transaction terms and specifications in a timely, complete, and conservative fashion. Such terms include, but are not limited to, contract notional amounts, maturity, reference assets, collateral thresholds, margining arrangements, netting arrangements, etc. The terms and specifications must reside in a secure database that is subject to formal and periodic audit. The process for recognising netting arrangements must require signoff by legal staff to verify the legal enforceability of netting and be input into the database by an independent unit. The transmission of transaction terms and specifications data to the internal model must also be subject to internal audit and formal reconciliation processes must be in place between the internal model and source data systems to verify on an ongoing basis that transaction terms and specifications are being reflected in EPE correctly or at least conservatively.
When the Effective EPE model is calibrated using historic market data, the bank must employ current market data to compute current exposures and at least three years of historical data must be used to estimate parameters of the model. Alternatively, market implied data may be used to estimate parameters of the model. In all cases, the data must be updated quarterly or more frequently if market conditions warrant. To calculate the Effective EPE using a stress calibration, the bank must also calibrate Effective EPE using three years of data that include a period of stress to the credit default spreads of a bank's counterparties or calibrate Effective EPE using market implied data from a suitable period of stress. The following process will be used to assess the adequacy of the stress calibration:
The bank must demonstrate, at least quarterly, that the stress period coincides with a period of increased CDS or other credit spreads – such as loan or corporate bond spreads – for a representative selection of the bank's counterparties with traded credit spreads. In situations where the bank does not have adequate credit spread data for a counterparty, the bank should map each counterparty to specific credit spread data based on region, internal rating and business types.
The exposure model for all counterparties must use data, either historic or implied, that include the data from the stressed credit period, and must use such data in a manner consistent with the method used for the calibration of the Effective EPE model to current data.
To evaluate the effectiveness of its stress calibration for Effective EPE, the bank must create several benchmark portfolios that are vulnerable to the same main risk factors to which the bank is exposed. The exposure to these benchmark portfolios shall be calculated using (a) current positions at current market prices, stressed volatilities, stressed correlations and other relevant stressed exposure model inputs from the 3-year stress period and (b) current positions at end of stress period market prices, stressed volatilities, stressed correlations and other relevant stressed exposure model inputs from the 3-year stress period. Supervisors may adjust the stress calibration if the exposures of these benchmark portfolios deviate substantially.
For a bank to recognise in its EAD calculations for OTC derivatives the effect of collateral other than cash of the same currency as the exposure itself, if it is not able to model collateral jointly with the exposure then it must use the standard supervisory haircuts of the comprehensive approach.
If the internal model includes the effect of collateral on changes in the market value of the netting set, the bank must model collateral other than cash of the same currency as the exposure itself jointly with the exposure in its EAD calculations for securities-financing transactions.
The EPE model (and modifications made to it) must be subject to an internal model validation process. The process must be clearly articulated in banks' policies and procedures. The validation process must specify the kind of testing needed to ensure model integrity and identify conditions under which assumptions are violated and may result in an understatement of EPE. The validation process must include a review of the comprehensiveness of the EPE model, for example such as whether the EPE model covers all products that have a material contribution to counterparty risk exposures.
The use of an internal model to estimate EPE, and hence the exposure amount or EAD, of positions subject to a CCR capital requirement will be conditional upon the explicit approval of the bank's supervisory authority. Home and host country supervisory authorities of banks that carry out material trading activities in multiple jurisdictions will work co-operatively to ensure an efficient approval process.
In the Basel Framework and in prior documents, the Committee has issued guidance regarding the use of internal models to estimate certain parameters of risk and determine minimum capital requirements against those risks. Supervisors will require that banks seeking to make use of internal models to estimate EPE meet similar requirements regarding, for example, the integrity of the risk management system, the skills of staff that will rely on such measures in operational areas and in control functions, the accuracy of models, and the rigour of internal controls over relevant internal processes. As an example, banks seeking to make use of an internal model to estimate EPE must demonstrate that they meet the Committee's general criteria for banks seeking to make use of internal models to assess market risk exposures, but in the context of assessing counterparty credit risk.5
The supervisory review process (SRP) standard of this framework provides general background and specific guidance to cover counterparty credit risks that may not be fully covered by the Pillar 1 process.
No particular form of model is required to qualify to make use of an internal model. Although this text describes an internal model as a simulation model, other forms of models, including analytic models, are acceptable subject to supervisory approval and review. Banks that seek recognition for the use of an internal model that is not based on simulations must demonstrate to their supervisors that the model meets all operational requirements.
For a bank that qualifies to net transactions, the bank must have internal procedures to verify that, prior to including a transaction in a netting set, the transaction is covered by a legally enforceable netting contract that meets the applicable requirements of the standardised approach to counterparty credit risk (CRE52), the credit risk mitigation chapter of the framework (CRE22), or the Cross-Product Netting Rules set forth CRE53.61 to CRE53.71 below.
For a bank that makes use of collateral to mitigate its CCR, the bank must have internal procedures to verify that, prior to recognising the effect of collateral in its calculations, the collateral meets the appropriate legal certainty standards as set out in CRE22.
The Cross-Product Netting Rules apply specifically to netting across SFTs, or to netting across both SFTs and OTC derivatives, for purposes of regulatory capital computation under IMM.
Banks that receive approval to estimate their exposures to CCR using the internal models method may include within a netting set SFTs, or both SFTs and OTC derivatives subject to a legally valid form of bilateral netting that satisfies the following legal and operational criteria for a Cross-Product Netting Arrangement (as defined below). The bank must also have satisfied any prior approval or other procedural requirements that its national supervisor determines to implement for purposes of recognising a Cross-Product Netting Arrangement.
The bank has executed a written, bilateral netting agreement with the counterparty that creates a single legal obligation, covering all included bilateral master agreements and transactions ("Cross-Product Netting Arrangement"), such that the bank would have either a claim to receive or obligation to pay only the net sum of the positive and negative (i) close-out values of any included individual master agreements and (ii) mark-to-market values of any included individual transactions (the "Cross-Product Net Amount"), in the event a counterparty fails to perform due to any of the following: default, bankruptcy, liquidation or similar circumstances.
The bank has written and reasoned legal opinions that conclude with a high degree of certainty that, in the event of a legal challenge, relevant courts or administrative authorities would find the bank's exposure under the Cross-Product Netting Arrangement to be the Cross-Product Net Amount under the laws of all relevant jurisdictions. In reaching this conclusion, legal opinions must address the validity and enforceability of the entire Cross-Product Netting Arrangement under its terms and the impact of the Cross-Product Netting Arrangement on the material provisions of any included bilateral master agreement.
The laws of "all relevant jurisdictions" are: (i) the law of the jurisdiction in which the counterparty is chartered and, if the foreign branch of a counterparty is involved, then also under the law of the jurisdiction in which the branch is located, (ii) the law that governs the individual transactions, and (iii) the law that governs any contract or agreement necessary to effect the netting.
A legal opinion must be generally recognised as such by the legal community in the bank's home country or a memorandum of law that addresses all relevant issues in a reasoned manner.
The bank has internal procedures to verify that, prior to including a transaction in a netting set, the transaction is covered by legal opinions that meet the above criteria.
The bank undertakes to update legal opinions as necessary to ensure continuing enforceability of the Cross-Product Netting Arrangement in light of possible changes in relevant law.
The Cross-Product Netting Arrangement does not include a walkaway clause. A walkaway clause is a provision which permits a non-defaulting counterparty to make only limited payments, or no payment at all, to the estate of the defaulter, even if the defaulter is a net creditor.
Each included bilateral master agreement and transaction included in the Cross-Product Netting Arrangement satisfies applicable legal requirements for recognition of credit risk mitigation techniques in CRE22.
The supervisory authority is satisfied that the effects of a Cross-Product Netting Arrangement are factored into the bank's measurement of a counterparty's aggregate credit risk exposure and that the bank manages its counterparty credit risk on such basis.


text:
Coming soon: Adobe Creative Cloud
This week saw the announcement for Adobe's much-anticipated Creative Cloud service, a new subscription service where you can create, publish, and share your work using Adobe Creative Suite applications, Adobe Touch Apps, and services. We're excited to announce that a Typekit plan will be included with every Creative Cloud subscription.
What does this mean for you? If you choose to subscribe to Creative Cloud, you'll receive a Typekit Portfolio plan along with your subscription. You will get all the applications that come with Creative Suite and a Typekit account with access to our full library — all for just $49.99 a month. (And if you've previously purchased Creative Suite 3 or later, your first year of Creative Cloud will cost just $29.99 a month.)
If you are a current Typekit user on the Personal, Portfolio, or Performance plans, you will be able to upgrade to a Creative Cloud subscription. When you do so, you'll receive a prorated refund for the time remaining on your current Typekit plan. But this upgrade is optional: if you prefer, you can stick with your current Typekit plan just as it is. All of Typekit's plans will continue to be available standalone through typekit.com.
In order to take advantage of Creative Cloud, you must first update your Typekit account to use Adobe ID. Your Adobe ID will allow us to link your Creative Cloud subscription to your Typekit account. If you have not yet updated your account, read on to learn how.
In the meantime, if you have any questions, feel free to ask them here or reach out to firstname.lastname@example.com.
2 Responses
If you purchase multiple subscriptions to Creative Cloud, how does the typkit portion play into that? For example, our office has 6 designers, so we will be purchasing 6 subscriptions to Creative Cloud. Would the number of pageviews be multiplied times 6 for our typkit plan or would we be limited to 500,000 pageviews per subscription?
Lauren VanZandt
Comments are closed.

subset: commoncrawl


text:
A few more details have been released on La Hacienda de San Angel, opening mid-September in Walt Disney World's Epcot.
Reservations will be available for dates after October 15th, and the dates from opening through October 15th will be a soft opening period (i.e. walk-up guests only).
The Disney Parks Blog caught up with Richard Debler, the president of San Angel Inn LLC, and Executive Chef Ernesto Zendejas, in charge of the big changes at the Mexico Pavilion at Epcot. Here are some of the new insights:
New "Flex-Space" Concept for Disney Dining
The space will be used as an air-conditioned dining room for La Cantina de San Angel next door during the day, and as a full-service restaurant after 4pm.
The Cuisine and Menu
Two taco specialists are being brought in from one of the best taquerias in Mexico to work with the La Hacienda team. Corn tortillas will be made fresh on the premises daily for La Hacienda and La Cantina (the counter-service restaurant next door). Tomato, chipotle and serrano, tomatillo, and mango salsas will be made fresh as well, and there will be unique flavors from different regions of Mexico represented, including cilantro and habenero flavors Southern Mexico.
Favorite La Hacienda de San Angel menu items include mini tacos, including a chiles toreados y chorizitos version with roasted sweet peppers with lime and sea salt and mini chorizos (pork sausage). Skillet entrees will also be available, with meat, veggies, and seafood for make-your-own-taco.
La Cantina de San Angel Counter-Service Menu
The Cantina menu will focus on tacos with grilled meat or chicken, garnished with fresh pico de gallo. Less Tex-Mex, more regional authentic Mexico.
La Hacienda will have a tequila ambassador on staff every day. We will feature tequila flights similar to La Cava del Tequila. We've developed a whole new line of margaritas with a mixologist from New York City that include a coffee margarita, which incorporates the smoky-cacao flavor of Mescal. Other favorites are the passion fruit and lime-raspberry margaritas. We're going to serve a mango-blueberry-basil margarita with fresh blueberries, mango puree and mashed basil, and an orange mango fire margarita with a dash of Tabasco and chile powder and ginger liquer. Margaritas will be frozen at La Cantina, on the rocks at La Hacienda.
La Cantina will offer paletas (Popsicles) with fresh fruit, such as mango with peppers. At La Hacienda, sorbets will include tamarind, watermelon, and some tropical fruit flavors. A sweet tamal del dulce filled with guava paste will be good for sharing.
Disney Dining Plan Credits
La Cantina de San Angel is one counter service credit. La Hacienda de San Angel is one table-service credit per person. If guests order one of the dishes meant for sharing, that will be two points. (Clarification — to cost two points, the menu item must be designated as being large enough for two people.)


text: The parallel stories of collapsing Pacific salmon populations and how biologists and engineers have become instruments in audacious experiments to replicate every stage of the fish's life cycle. Our once great runs of salmon are now conceived in laboratories, raised in tanks, driven in trucks, and farmed in pens. Here we go beyond the ongoing debate over how to save an endangered species.


text:
After salvaging the finale of their five-game road trip, the Ottawa Senators return home to host the Boston Bruins in Monday's Northeast Division clash at Scotiabank Place.
The Senators won a season-high five straight games from Feb. 18-25 and the final four victories of that stretch came at home. However, Ottawa then went 0-2-2 at the start of their recent swing before posting a 3-2 regulation win against the New York Rangers on Friday.
However, considering its recent series' history against the Bruins, Ottawa faces an uphill battle in Monday's game. Boston has taken two straight and 10 of the last 11 against the Senators and the B's are riding a nine-game winning streak in Canada's capital city.
Boston, which also has won 12 of 13 in Ottawa, hasn't lost a road game in this series since April 7, 2009.
Monday's contest is the second of five scheduled meetings between these divisional foes this season. The Bruins posted a 2-1 overtime win against the visiting Sens on Feb. 28, as Patrice Bergeron scored the winner in OT and Tuukka Rask stopped 30 shots for Boston.
The Senators ended their four-game slide thanks to Jakob Silfverberg's tally late in the third period. Silfverberg gave Ottawa a 3-2 edge with 4:41 remaining in regulation, corralling the rebound of an Eric Gryba shot and lifting it under the crossbar from the right side.
New York went for the extra skater with just over one minute to play, but Silfverberg's marker stood up for the win.
Zack Smith and Patrick Wiercioch also scored for the Senators, who hadn't won since Feb. 25 against Montreal and notched their first road victory since Feb. 18 at New Jersey. Robin Lehner recorded 33 saves for the victory.
"We needed to win, and we needed to win on the road. I thought we stepped up and showed some determination," said Senators head coach Paul MacLean. "We need to have everyone playing hard and that's what happened."
The Sens have won their last five home games and are 9-1-2 at Scotiabank Place this season. Following Monday's encounter with the Bruins, Ottawa will play its next two tilts on the road in Montreal and Buffalo.
The Bruins are 8-1-1 over their last 10 outings and currently sit three points behind Montreal for first place in the Northeast. Boston has played four less games than the Canadiens this season.
Rask led Boston to its second straight win on Saturday, as he turned back all 23 shots he faced to notch his second shutout of the season in a 3-0 win over visiting Philadelphia. The Bruins scored all three of their goals within a 2:18 span in the first period.
Tyler Seguin, Chris Kelly and Daniel Paille all lit the lamp during Boston's scoring barrage, as the B's recorded their first home shutout of the Flyers since Jan. 25, 2003, when Jeff Hackett blanked Philadelphia.
"It was good for us to get that lead," said Bruins head coach Claude Julien. "For us, it was about playing a 60-minute game. We knew they were going to come out better in the second [period] and we had to face that."
Unlike Ottawa, the Bruins have fared very well on the road this season, logging an 8-1-2 record as the guest compared to a similar 8-2-1 mark in Boston.
The Bruins will complete a two-game swing Tuesday evening in Pittsburgh.


text:
Tokyo, October 28, 2020 — FUJIFILM Corporation (President: Kenji Sukeno) is pleased to announce the launch of "instax SQUARE SQ1" (SQ1) on November 6, 2020 in Japan. It will be a new addition to the instax series of instant cameras compatible with square format film, allowing users to enjoy on-the-spot photo printing. SQ1 is an entry model that sought simple design and operability, and delivers a fun square format instax print experience to a broad range of users.
Also accompanying the launch of SQ1 are two square format film. "RAINBOW," which features various gradations around its frame in different color for each print, and "MONOCHROME," a monochrome print which users can enjoy artistic photographic expressions. Square format film "RAINBOW" and "MONOCHROME" will be available on November 6, 2020 in Japan.
The instax series has been affectionately called "Cheki" in Japan since its initial launch in 1998. Now many people, especially the younger generation, embrace it in over 100 countries worldwide including Europe, the Americas, China, and Southeast Asia. Offered in this series are card-sized "mini format" prints, "square format" prints, and double-card-sized "wide format" prints. With differently formatted film options, Fujifilm invites users to have fun with instax in many different ways. The series has gained worldwide popularity for its ability to not only print and keep a precious moment right on the spot but also as a new tool with which users can communicate their emotions.
The SQ1 is compatible with square format film, which have been popular among people in younger generations. Fujifilm pursued a simple and stylish design that enables users to carry the camera around in a variety of situations. Featuring only a shutter button for control, the SQ1 makes photo-shooting easy for everybody: it sports a rounded grip for a comfortable hold based on a box form reminiscent of square format film, and its matte feel is also key to the camera's ever-attractive design.
The series comes in three colors: Terracotta Orange, a vivid color that could work as an attention-grabbing fashion item; refreshing Glacier Blue; and Chalk White, which can easily blend with any type of style.
Compared with mini format film, known as the typical size of instax film, square format film can cover a wider range and it is suitable for group shots and landscape photos. Furthermore, square format film can capture the subject with the background and atmosphere of the setting, broadening the user's pallet of photographic expressions. They are well-liked across countries and generations, because by taking advantage of the 1:1 aspect ratio and arranging creative composition, square format film can turn casual scenes into quality photos.
The SQ1 gave special attention to simple operability so that users can enjoy square format photo prints with ease. It automatically senses ambient light when the user powers it up with a turn of the lens barrel and presses the shutter button after readying the camera. It features the "Automatic Exposure" function, optimizing shutter speed and flash output according to the scene. Users can take quality photos ideally exposed to the main subject and background in a variety of situations, ranging from a bright sunny day outdoors to a dark, indoor condition.
Users can also switch to the Selfie Mode and shoot away immediately by turning the lens barrel to power on the camera, and then turning the lens again toward the same direction.
Fujifilm is also launching cases that feature shoulder straps, useful when carrying the camera around. They will come in three colors matching SQ1's colors.
Fujifilm will continue to expand the world of the "instax" instant photo system that allows people to enjoy on-the-spot photo printing.
1. Product name
(1) Instant camera "instax SQUARE SQ1"
(2) Square format film "RAINBOW"
(3) Square format film "MONOCHROME"
2. Release date in Japan
(1) Instant camera "instax SQUARE SQ1" (available in three colors): November 6, 2020
(2) Square format film "RAINBOW": November 6, 2020
(3) Square format film "MONOCHROME": November 6, 2020
3. Price
Open price for (1), (2), and (3)
- i) Automatic Exposure function for attaining optimum
shooting settings for any scene
- Users can take photos optimally exposed to the main subject and background in situations including indoors and low lights, producing high-quality instant photo prints on the spot.
- ii) Selfie Mode for taking selfies and close-ups with ease
- Users can activate the Selfie Mode, which is perfect for selfies and close-up shots, by simply giving another turn to the lens barrel after powering up the camera. There's no need to attach an external close-up lens, which makes it easier to take selfies.
- iii) Design features
- Fujifilm sought an easy-to-use, ever-attractive and simple design. The SQ1's rounded grip not only offers a good hold but accentuates the design. The camera comes packaged with a grip attachment: a rubber-made, textured and slip-resistant piece that users can attach to the backside of the SQ1's grip. Adding this attachment will provide better hold and allow for a more steady photo-shooting experience.
(2) Square format film "RAINBOW"
- Rainbow colored frame, very popular as mini format film, has arrived in square format film.
- This film can be used with all instax SQUARE series of cameras compatible with the square format film.
- The frame of this film comes in gradient colors. Users can enjoy a variety of hues, which add an uplifting and cheerful feel to the photos.
- Each pack contains ten films.
(3) Square format film "MONOCHROME"
- In response to growing demand from users, Fujifilm introduces Square format film "MONOCHROME".
- This film can be used with all instax SQUARE series of cameras that are compatible with square format film.
- Users can take monochrome photos that deliver a nostalgic atmosphere.
- Each pack contains ten films.
5. Specifications
(1) instax SQUARE SQ1
- Film
FUJIFILM instax SQUARE instant film
- Lens
2 components, 2 elements,
f = 65.75 mm, 1:12.6
- Viewfinder
Reverse Galilean finder, 0.4X, with target spot
- Shooting Range
0.3 m and beyond (use selfie mode for 0.3 m to 0.5 m)
- Shutter
Programmed electronic shutter
1/2 to 1/400 sec.
Slow synchro for low light
- Exposure Control
Automatic, Lv 5.0 to 15.5 (ISO 800)
- Film Ejection
- Film Developing Time
Approx. 90 seconds (varies depending on the ambient temperature)
- Flash
Constant firing flash (automatic light adjustment),
Recycle time: 7.5 seconds or less (when using new batteries),
Effective flash range: 0.3 to 2.2 m
- Power Supply
Two lithium batteries (CR2),
Capacity: approx. 30 instax SQUARE film packs (under FUJIFILM test conditions)
- Auto Power Off Time
After 5 minutes
- Other
Includes film counter and film pack confirmation window
- Dimensions
130.7 mm X 118.6 mm X 57.5 mm
- Weight
390 g (without batteries, strap, and film)
- Package contents
Two lithium batteries (CR2), Hand strap, Grip parts
(2) instax SQUARE film "Rainbow"
- Screen size
62 mm X 62 mm
- Film Size
86 mm X 72 mm
(3) instax SQUARE film "Monochrome"
- Screen size
62 mm X 62 mm
- Film Size
86 mm X 72 mm
Media Contact
FUJIFILM Holdings Corporation
Corporate Communications Division
Public Relations Group
Customer Contact
Please contact your nearest Fujifilm office.
Fujifilm subsidiaries and distributors, please access the following URL.


text:
Home / Africa & Middle East / Israel / 18 Cool things to do in Tel Av…
18 Cool things to do in Tel Aviv for free
No need to take out your wallet to enjoy these 18 suggestions for touring, trekking and tanning in Israel's city by the sea. Tel Aviv is one of the world's top destinations. This city-by-the-sea is consistently included by travel magazines among their best picks.
The Lonely Planet ranked it among its Top 10 action-packed cities and the world's Top Three Cities. National Geographic fell in love with Tel Aviv's shoreline. Conde Nast Traveler magazine highlighted the city's unique Bauhaus architecture and heaped praise on its ice cream parlors and bars. Tel Aviv holds the title for World's Best Gay city. And Travelers Digest voted it a city full of beautiful people. Most recently USA Today named Tel Aviv the best beach party spot on the planet!
From beach boardwalks to green parks, trendy shopping to awesome nightclubs, museums to open-air markets, there's more than enough to do in Tel Aviv.
Even better: There are oodles of free options in the city. ISRAEL21c chose 18 of the best things to do in Tel Aviv without spending a shekel.
1. Beaches
Tel Aviv's west side is a 13-kilometer (eight-mile) stretch of sandy beaches, prompting National Geographic magazine to call Tel Aviv "Miami Beach on the Med". You can't really go wrong no matter where you set down your towel. Gordon Beach is one of the most famous, attracting tourists, locals, joggers and sun-tanners all year round. Stop by Saturday mornings in winter (11am to 2pm) or evenings in summer (8pm to 10pm) and give public Israeli folk dancing a whirl. Banana Beach, located on the southernmost edge near Jaffa, draws the bohemian crowds on Friday evenings for drum circles, singing and dancing. Metzizim Beach draws a smattering of everyone to its sandy shores. Catch a game of matkot (paddleball) or bring your kids to the children's playground. Hilton Beach (near the hotel) is the gay beach, and Jerusalem Beach is also very LGBT friendly. So pack your lotion, towel and good book to read – sandy Tel Aviv on the shoreline of the Mediterranean Sea awaits.
2. Tel Aviv-Jaffa Promenade
The Tel Aviv-Jaffa Promenade is a bustling walkway that connects Old Jaffa in the south to the northern neighborhoods of the city. Come here for gorgeous sunsets, people-watching, yummy food at one of the cafés or restaurants along the promenade, or to hear some of the best classical music buskers you're likely to come across.
3. Hayarkon Park
Known as the green lung of the city, this "Central Park of Tel Aviv" attracts some 16 million visitors every year. The urban park's 3.8 square kilometers boast walking paths, bike paths, dozens of children play areas, botanical gardens, extensive lawns, sports facilities, two mini zoos and artificial lakes. The park also houses paid entertainment options including an aviary, a water park, a climbing wall, a children's train and paddleboat hire. You can follow the Yarkon River all the way from North Tel Aviv down to the Mediterranean Sea.
4. Old Jaffa
No visit to Tel Aviv is complete without a hop over to Old Jaffa. It is one of the world's oldest cities and home to the oldest seaport in the world. In the last decade, Old Jaffa has become one of the hottest places to be as designers, artists and gourmands move in. Come hungry because street food is abundant and delicious. Don't miss the famous Clock Tower, the flea market, restaurants, designer stores, galleries and museums, the Old Port and the NaLaga'at Center artistic complex operated by the Muslim-Christian-Jewish deaf and blind community.
5. Tel Aviv Port
Tel Aviv's port is one of the city's main entertainment hubs with trendy shops, bars, nightclubs, cafés and a bustling farmers' market. Thousands of residents and tourists walk along the uniquely designed wooden deck promenade to take in the salty sea breeze, gorgeous sunsets and to feel the vibe of Tel Aviv. There's a huge sand pit for kids to play in. Weekends are busiest, with buskers and balloon artists keeping the crowds entertained. The port also hosts numerous outdoor festivals throughout the year.
6. Carmel Market
This is not just another produce-and-clothing market; the Carmel Market is the heartbeat of Tel Aviv. You don't have to come to shop. Instead, jostle past the colorful stalls and take in the smells and sights. Some vendors are known to sing out the prices of their goods – which range from spices to dried fruits, fresh produce to fish and souvenirs. Trendy cafés and gourmet food stands are also part of the scene. The market runs between the corner of King George and Allenby streets and the Carmelit Bus Station. It is open every day from 7 to dusk, except for Fridays when it closes one hour before the Sabbath.
7. Levinsky Market
The Levinsky Market is the place for spices. And dried fruits, nuts, traditional pastries, boutique cheeses, pickled produce, exotic meat cold cuts and salted fish. The climax of activity is on Friday mornings, as residents pack narrow Levinsky Street to visit their favorite delicatessens, bakery shops, roasted nut stalls and spice shops. If you do head to this market, start or end your tour in the neighborhood of Florentin – Tel Aviv's SoHo of the über cool and working class. Photography buffs take note: Levinsky Market is one of the best places to shoot in Tel Aviv.
8. Nahalat Binyamin
The Nahalat Binyamin Arts & Crafts Fair takes place every Tuesday and Friday along the pedestrian mall. More than 200 Israeli craftspeople and artists set up stalls to exhibit and sell their unique and often humorous creations. It's an outdoor fair with street performers, clowns and musicians providing free entertainment for visitors. The market is open on those two days from 10am until sundown.
9. Neve Tzedek and historic train station (Tachana)
Neve Tzedek is one of Tel Aviv's most beautiful neighborhoods – and historically, was the first neighborhood built outside of Jaffa. It's perfect for a romantic stroll along the small streets and alleyways and past the beautifully restored buildings. The Suzanne Dellal Center dance and theater complex sits at the heart of this neighborhood, and a visit to its courtyard is a must. The neighborhood has hip cafés and gourmet restaurants as well as designer stores, boutique hotels, and lovely shops. On the southern edge of the neighborhood is the historic train station known as the Tachana. This newly-restored compound now serves as a cultural and shopping center.
10. Bauhaus Architecture
Tel Aviv boasts a treasure trove of exemplary architecture.
One of Tel Aviv's nicknames is even the White City, thanks to its large number of white Bauhaus (International-style) buildings. In 2003, the United Nations Educational, Scientific and Cultural Organization (UNESCO) proclaimed Tel Aviv's White City a World Cultural Heritage site. Take a self-guided stroll down Rothschild Boulevard, Dizengoff Street, Bialik Street or through the Neve Tzedek neighborhood to see the best buildings the White City has to offer. Or, join a city-sponsored free walking tour of Tel Aviv focusing on the architectural styles of the 1930s.
11. Free Walking Tours
The best way to the see the city is on foot and the municipality has set up free, English-language guided tours of Tel Aviv's top sights as well as a series of go-it-alone tours. For the guided tours, there's no need for advance booking, just show up at the meeting point. The White City tour, every Saturday at 11 (except for Yom Kippur) focuses on the Bauhaus architecture along Rothschild Boulevard and tells the story of Tel Aviv. Meeting point: 46 Rothschild Street (corner of Shadal Street). The Old Jaffa tour, every Wednesday at 9:30am, winds through the Flea Market, the Old City area, past some of the city's archeological sites and up to Hapisga Garden. Meeting point: Clock Tower. The Tel Aviv University tour, every Monday at 11am. (except for Jewish holidays, the week of Sukkot, the week of Passover and during the last week of August), gives an introduction to the Israeli architecture on campus, the styles, international influences, stories of buildings and architects, environmental sculpture and landscape design. The tour is offered in cooperation with the Friends of Tel Aviv University. Meeting point: Dyonon bookstore, campus entrance (intersection of Haim Levanon & Einstein streets). Maps for the DIY self-guided tours can be picked up at the municipality's Visitor Center.
12. Tel Aviv Greeters
Tel Aviv Greeters offer free walks of the city with local residents. It's a volunteer program that matches visitors with residents who just want to share their love of the city. The Tel Aviv Greeters are part of the Global Greeter Network, an informal virtual association of Greeter programs around the world. Walking the city with a local is a great option for families, groups of friends or solo travelers. The Tel Aviv Greeters will take you wherever you want to go – or take you to one of their most requested hotspots including Neve Tzedek, Yemenite Quarter, Tel Aviv Port, Hayarkon Park, Florentin Quarter, Old Jaffa or even the beach. It's totally free and visitors are not allowed to give tips.
13. Culture Square
Tel Aviv is Israel's culture city. Most of the museums, orchestras, theaters, art galleries, dance venues and music halls come with an entry fee, however. To get a taste of the city's arts scene, head over to Culture Square at the end of Rothschild Boulevard. Here you'll find the historic Mann Auditorium, home to the Israel Philharmonic Orchestra, the recently renovated Habima National Theater and the Helena Rubinstein Pavilion for Contemporary Art — all facing a gorgeously designed public courtyard with a small flower garden, water fountain and dozens of families frolicking among them.
The pavilion showcases changing exhibitions, reflecting diverse fields and practices in contemporary Israeli and international art – and is free to the public.
14. Dizengoff Street
Strolling down Dizengoff Street is a favorite pastime for many residents.
For great people-watching or just a place to take a break, park yourself on one of the benches around the Fire & Water Fountain. The fountain is located in Dizengoff Square, which shows off creations by young Israeli industrial, graphic, fashion and plastic designers every Thursday from 4-11pm, and an antique-flea market every Tuesday and Friday.
15. Tel Aviv Rollers
Every Tuesday night in Tel Aviv as many as 400 in-line skaters hit the streets through a loose confederation nicknamed the Rollers. Police escorts are on hand to keep the skaters safe as they zip along a 20-kilometer route past the city's night spots. If you've got a pair of skates, don't miss this high-energy fun. Meeting point: Habima National Theater, 10pm.
16. Tel Aviv University's Botanical Gardens
The magnificent Botanical Gardens are located at the heart of Tel Aviv University. Stretching across 34,000 square meters, the gardens serve as a meeting place for the world's different species of flora and fauna. Visitors are encouraged to take a closer look at the plant museum from Sunday to Thursday, 8am to 4pm. But call ahead (+972-3-640-9910) because the garden is also used as an outdoor class for students at the university.
17. Rabin Square
The main plaza just outside City Hall is known as Rabin Square, named for Israeli Prime Minister Yitzhak Rabin. He was assassinated on November 4, 1995, after a peace rally in this square. A monument to Rabin stands at the spot where he was killed. Israeli sculptor Yael Ben-Artzi used 16 basalt stones from the Golan Heights and sunk them into the earth to symbolize Rabin's deep connection to the land.
18. Ben-Gurion House
One of the smallest museums and likely the most overlooked is Ben-Gurion House, a historic house museum at 17 Ben-Gurion Boulevard that served as an additional residence for Israel's first prime minister, David Ben-Gurion. Visitors can see Ben-Gurion's library, his family's sleeping quarters and the study where he worked. Take a free guided tour of the house and learn about Ben-Gurion's life work.
For more information, see our travel ideas to Israel or more specifically our 4 day Cosmopolitan Tel Aviv package
Get more travel inspiration by email.
0 Comments
Inline Feedbacks
View all comments
Get the latest travel trends & hear about the best deals on vacations around the world.
If you're a Globetrotter, these are the newsletters for you!


text:
The Warner Bros. adventure debuted with $55.55 million in North American ticket sales, according to studio estimates Sunday -- the biggest October opening ever and the biggest openings for Bullock and Clooney.
"It's all good news," said Dan Fellman, Warner Bros. president of domestic distribution.
He credited director and co-writer Alfonso Cuaron, who takes viewers into orbit with a film that's set almost entirely in space and explores the challenges faced by two astronauts during a spacewalk. Cuaron's team developed equipment and technology to replicate the weightlessness of space.
"It's never been seen before, visual effects like this," Fellman said. "Just the space shots are mind-boggling. It looks like you're right there."
Last week's top movie, Sony's "Cloudy with a Chance of Meatballs 2," rolled into second place with $21.5 million. The animated sequel features the voices of Bill Hader and Anna Faris and a cast of "foodimals," like tacodiles and shrimpanzees.
R-rated fare rounds out the top six. Twentieth Century Fox's "Runner Runner," starring Ben Affleck and Justin Timberlake, opened in third place with $7.6 million.
Warner Bros.' "Prisoners," starring Hugh Jackman and Jake Gyllenhaal, crept into the fourth spot. Universal's racing tale "Rush," starring Chris Hemsworth, drove into fifth place, followed by "Don Jon," Joseph Gordon-Levitt's directorial debut about a porn addict looking for love.
"The adult drama is back, and fall is the season for the adult drama," said Paul Dergarabedian, senior media analyst for box-office tracker Rentrak. "This is when you get your more challenging films, some of the more esoteric fare, and a lot of those movies, by their nature, have to be rated R."
Estimated ticket sales for Friday through Sunday at U.S. and Canadian theaters, according to Rentrak. Final domestic figures will be released Monday.
1. "Gravity," $55.55 million.
2. "Cloudy with a Chance of Meatballs 2," $21.5 million.
3. "Runner Runner," $7.6 million.
4. "Prisoners," $5.7 million.
5. "Rush," $4.8 million.
6. "Don Jon," $4.16 million.
7. "Baggage Claim," $4.12 million.
8. "Insidious Chapter 2," $3.87 million.
9. "Pulling Strings," $2.5 million.
10. "Enough Said," $2.15 million.
Take ABC13 with you!
Download our free apps for iPhone, iPad and Android devices


text:
Due to the global health crisis our customer service hours have been adjusted to Monday through Friday 7am-1pm PST.
Please be assured that we are working closely with our delivery partners and taking all necessary precautions to ensure the health and safety of our customers and our team members. Thank you for your patience and be safe and healthy!
We ship all orders less than 10 lbs expedited ground freight. Receive free freight (continental USA) on orders over $49 with use of code. Otherwise, orders less than 1 lb for a flat rate of $4.95 and $8.95 for orders greater than 1 lb. Delivery times may vary based on delivery zip code. Orders greater than 10 lbs will be shipped ground and may exceed 3-days. Delivery times do not include processing time. Cannot be combined with other offers and additional restrictions may apply.
5 (18)
4 (11)
3 (11)
2 (4)
1 (1)
See sizing tab for important fitting suggestions.
100% Acrylic
This information is shown as a guide only and not a guarantee.Actual fitting may vary.
These are much thicker than they seem and don't have nearly enough elasticity. Wear them once and they bag, sag and fall off. Certainly 3 stars for being warm, but they're not very practical for ballet class.
Age: 22 to 29 Fit: Runs very large Comfort: Durability:
I'm 5 foot 3 and 115. Got a small.
Pros- Super soft and warm
Cons- The pants I received didn't have the cute detail that shown in the pictures, yet the product number is the same. After trying them on and wearing them for 5 minutes I can tell they will be prone to stretching out and not looking flattering. Also very baggy (not hugging) at the ankle when worn over the heels which I think makes for a bad line. I'll be returning them.
Age: 40 to 49 Fit: Runs large Comfort: Durability:
One of my friends has these and raved about how comfortable these are, so I ordered a pair. After reading the reviews and hearing that they run pretty big, I ordered a size Large. Typically I wear an XL in dance wear and size 16 in women's clothing and the large fit perfectly. They looked a little snug at first, but after a few minutes they loosened up and after one wear they did stretch out quite a bit. I am pretty short (5'0) so I appreciate that the waist can be rolled easily. The legs are too long for me, so I pull them down over my feet when I warm up and then cuff them later on. So far, I really enjoy them and would recommend them to anyone.
Age: 19-21 Comfort: Durability:
If you weigh under 125lbs, you better get the small. The medium fits me perfect and I'm a size 6-7. Very soft. You need to wear tights under, because it is sheer when stretched. The roll down top, will roll up like overalls, if you are short waisted or small busted. As with most Bloch items, I'm very pleased.
I love the fit (loose) on these and they're great for before and during class, waiting backstage etc. My only complaint would be that after a wearing they get a bit baggy. They run a little big, as I am 5'5" 120lbs and they are a little large on me, but that's how I like them.
Age: 40-49 Comfort: Durability:
I'm 5'1 and 130 lbs, I got a size up to account for my hips, but that really wasnt necessary. They do get quite static-y, but a fabric sheet fixes that up. The only bad part is how easily they stretch, and that they started off a size big doesn't help much.
Age: 15-18
I'm 5'5 and 107 pounds and I normally get xsmall on dance clothes and I got the small and they fall off of me evertime I jump or leap. They are very warm and comfterable but are verry hard to dance in them
Age: 15-18 Comfort: Durability:
It does its job to warm up my body and I particularly like the pull up. However, the material is very staticy, consider you wear warm up during winter time and in Boston aread, the winter gets a bit dry, so that's really annoying. Definitely go with one size smaller as it runs very large and tend to get loose after you wear it. I am giving it overall as 3 stars due to the easy to get streched out and static. I will wash it and see if it shrinks a bit.
Age: 30-39 Comfort:
They fit for the first 10 minutes, then stretch and you will spend all day pulling them up. They start as a tight knit legging and.soon end up an unflattering knit sweatpants. Not.good!
Age: 22-29 Comfort: Durability:
I'm generally an XL in things, as I'm tall and am far curvier than your average ballet dancer. Judging by the reviews, I thought ordering a L would be safe, as everyone says they run large. While the L does work, even that is a little roomy.
The pants really warm you up, they're incredibly comfortable, and I love using them when I get to class and the studio is cold. They're excellent warm-ups, but definitely order 1-2 sizes smaller than you generally get, because they run very large.
Love these pants!! They are a nice change from tights, leg warmers and shorts, since these roll-over waist pants do the job of all three. And I can pull the legs up and make them capris and they stay!! the material is a little on the thin side and if you have a nylon leotard that isn't matte, then the waist slips down, but other than that these pants are exactly what I was looking for. They do run large, more like ladies sizes then juniors. I normally wear a size 10 and the medium is perfect. Hope they add a few more colors. .
Just received these two weeks ago and am already in love! They are so soft and warm me up instantly. They do run large (I usually wear XL in everything because I'm tall with a long torso), but a M fit perfectly, even perhaps on the slightly larger side. They are very warm and I love the versatility of being able to wear them either rolled down over my skirt, or pulled up all the way over my torso; can easily make adjustments during class depending on how warm/cold I am at the moment. Would definitely purchase again when these wear out!
Age: 40-49 Comfort:
These are amazing! They do run large but they help you in so many ways. When I start class I pull the waist up so it's almost like wearing overalls without the straps. Over that I wear a huge sweater, trashbag shorts, and booties. They are a huge help and a great price. They are a great buy.
They are SO HUGE! Seriously, I read all the reviews, bought a medium because I'm tall and figured they'd fit me...uhm, I was so wrong. They were very big and made me look really fat, and I'm not at all. I'm 5'9 and a half, and I wear mediums in most things unless they run small. I was very excited to get this but I'm sending them back...only reason they got three stars is because they were really warm and soft. So sad ): And I'm not sure I should try the size small...
Age: 15-18 Comfort:
These pants got stretched out really quickly, and the roll-over waist was so loose that it could never stay on me.
Age: 22-29 Fit: True to size Comfort: Durability:
These are super comfy, but they do run big. I am 5'6'' and around115-116 lbs. I normally wear mediums and dancewear, but I got a small because of the reviews and they are still a little to big. Also, my hips are not tiny like most dancers so they aren't the most flattering warm-ups on me, but they are warm and soft and comfy.
Age: 15-18 Fit: True to size Comfort: Durability:
These warmups are a LOT baggier than they look from the photo. They might have fit that snugly for the first 5 minutes brand new but they're not slim cut as they appear. They're shorter and wider. I wish they came in XS. I'm 5'6 112lbs and wear mediums in leos but these pants are big. I like them even though they're not particularly flattering. They're warm and the band around the ends make them stay if you want to shove them up to your knees if you get too hot during class. Also the waist part is baggy enough to make you look smaller in comparison to all the bulk of the warmup! The Mirella jumper is more slim cut but a different knit.
The only reason I gave these pants 4 stars is because they are really really big and fall off. I don't know if that's just because I ordered to big of a size, or if they normally run that big. But I normally wear a medium in most products, and that's what I ordered. And yet I still love them and wear them all the time.
I was so excited to finally receive these warm up pants in the mail. When they came and I tried them on, they were very large. I am a very petite person, but I normally fit into dance clothes because I have very long legs. I was very disappointed by this product, and sad to send them back because they were very warm, but looked ridiculous on me. So, if you're small like me I would not recommend this, but otherwise you might enjoy them. Looking for other warm up pants now... ):
I just picked up a pair of these with my last order... They run big, Really long and baggy around the thigh area on me. So I need to return mine.. They are super comfy and look like they will work well with the right size.
Age: 30-39 Fit: True to size Comfort: Durability:
I got these a long time ago and they are still in GREAT condition! They keep you nice and warm! They are very comfortable and cute!
These do run very large. I usually order an L for warm-ups because I don't want to feel constricted in the least. I got these in an M because of the reviews here and these warm-ups are indeed huge, but it can be fixed by an elastic tied around your waist. They are really very warm and comfortable!
I am normally a medium in dance stuff (small in street bottoms), but these are SO loose. Instead of rolling over the waist I pull it all the way up over my chest (otherwise it falls down). Otherwise I really like them, they deffinetly do warm you up.
these pants are super warm! I like to wear mine not rolled down, but so it goes all the way up my torso. Although they do look good rolled. Overall, they are warm, stylish, and comfortable.
I'm 5'2 125lbs and got a medium, big mistake. I found they were HUGE and baggy. I washed them once and they ran, now they're all falling apart and shredded. However it does keep me warm. I recommend hand washing them.
I bought the burgundy in a size small. I'm 5'4" 110 lbs size 24-25 in jeans. I love the color and material. I do have some issues with keeping them up where they should be, if I happen to be doing squats or something. I wish there was an XS!
These pants are fantastic, they're light-weight, but warm. The only problem I had with them was the fact that they catch and tear so easily. They do also run big. I'm 5'7", and a heavier set dancer, and I got a large, they were HUGE. I would get a size smaller definitely.
I'm not sure why everyone is saying they're so baggy. I'm 5'4", between 105-110 lbs and the small fits me great. I feel like a whale now compared to everyone else though... They're not tight on me like tights, but they certainly aren't baggy. They can be rolled up over your leotard or worn rolled down like in the picture. The material is ultra soft and warm.
I own these in a small (I'm 5 ft) and they are SOOOO baggy! They are really warm but they are too baggy to wear in class. I wear them around the theater. Good for larger people.
These are absolutely amazing! You can wear them super high or even roll them. They are made big. I normally wear a large but I got a medium in these and they still are a little loose. I'm 5"6 125 pounds. AWESOME A MUST HAVE
These warm ups are so pretty! One of my best friends wears them to every class and she looks so pretty in them! They are supper soft and fit perfectly! Love em!!!
These are really good warm ups. I love them. They are soooooooo warm. But after a while of wear and tons of grand plies, they got pretty stretched out so I have to wear an elastic ballet belt around the waist to keep them up. They are definitely worth every penny.
These have been great for keeping warm through a fairly cold winter. They are wonderfully comfortable and warm. The only negative is that mine have started to pill a fair bit.
I own these pants in black medium. They look a lot better than they actually are. They are so baggy and loose, I use a waist elastic belt to hold them up. But, they still manage to keep me warm :)
I like this because they warm up your complete body at once. They fit kind of baggy though... I'm 5'7" and I weigh 125 lbs, but it's OK.
Great product for such a cheap prize.
I liked these a lot and they kept me warm through barre during winter, but get a size smaller for sure. I have to carefully pull them on so that I don't stretch out the fabric or else it falls and I have to wear a hip belt on it to keep it from falling down. I like to wash them after every time I use them because it seems to shrink them smaller and they fit better (they stretch out during class). But they are very comfy and worth the $, but buy a size smaller.
Yes, these were soft but they do not look like the picture at all. I hate seams, and no matter which way you flipped them, seams were obvious. They were not as thick as pictured-more stretched out and somewhere between drafty and warm.
I wear M/L in pants and tights, and the smalls were TOO BIG. I bought these because I have problems with my hamstrings/hips warming up, but I ended up returning them, and my search for warm ups continues.
These are very soft and warm! The ability to fold down gives hips a double layer, which I especially like on cold mornings. They can be pulled up like a jumper or rolled down, as they are in the picture. They also go way down to cover the full ankle, with a nice open tricot-like detail at the bottom. They are, I find, a bit baggy around the seat, and they do need a little something to hold them up if you're still wearing them for allegro or they start to drift down. I'm usually warm enough to take them off by then.
Very comfortable. They are lightweight yet keep you warm.
I love these but they're HUGE! The other reviewers are right on target. I had to get creative to find ways to keep them on during warm-up/practice, but it's so worth it! They're soft and warm and look great with Bloch's shrug!
I think that these pants are OK. I think if you order them you should probably get a size smaller, because they run pretty big.
I love these, but the waist started to come unravelled after first wearing, so I am returning them as defective. I don't want to take a chance on having to mend all the time. But otherwise they are perfect! I am 5'8" & 130lbs - normally Large - bought small & fit perfect. I cut the waist band off an old pr of tights & folded pants down over that - held them up great. Wish I could keep them.
These are a lovely, affordable way to keep toasty. The hem at foot has precious detailing. These do run large. I'm 5'9", ordered size large, but could have worn a medium comfortably.
I am purchasing the light blue shrug that goes with this. (Bloch adult lightweight shrug item #Z0979) I wanted to get it as a set but I noticed the pants only come in black and burgundy. Will it ever come in light blue? If so what would be the best size to get for my daughter who is 5'7" and has a 25" waist?
Thank you.
Bloch is currently discontinuing all of their warm ups in blue and light pink. The light pink and blue shrugs (style #Z0979) that are currently showing available are ones that we have left over in our own stock. As for the sizing, I would get her girth measurement and compare that to the size chart. That measurement will show the item that should be most proportionate to your daughter's measurements.- DDS Customer Service (06/03/2013)
Sign in before answering this dancer's questions.
We're sorry this item is temporarily out of stock. Would you like to order it anyway?


text:
Risk compensation is irony encapsulated; the more measures that are taken to ensure people's safety, the more dangerously people will act to make up for it. Perhaps people are just designed to seek a certain level of risk.
And yet, safety measures are good things. Sure, they can be overdone, but everyone likes their staircases to have railings, and everyone likes their cars to have good brakes, and everyone prefers going home at night to break open a bag of potato chips to spending time in the hospital. People make mistakes as they go about their daily lives, so minor precautions to make sure that those mistakes don't have disastrous results is basic kindness and common sense. The problem is, those precautions that are taken with the idea that the mistakes they compensate for won't get more frequent or more egregious. Sadly, this is not the case.
It seems that people engage in risk compensation; becoming more careless as the consequences for that carelessness become less. This kjnd of compensation is often seen in ordinary life. No one carries a half-full cup of lukewarm water the same way they'd carry a cup of scalding coffee filled to the brim. The problem is, risk compensation is also used in extraordinary and dangerous situations. For example, the rate of skydiving fatalities stayed the same for decades after the eighties despite the increasing number of failsafes and technological improvements to the chutes. Once just jumping out of a plane wasn't enough for people, they began showing off, doing maneuvers that killed them despite their functioning parachutes.
Even people who don't throw themselves out of planes regularly take their life in their hands. Driving is a subject of much study in the area of risk compensation. A huge number of people drive, or are driven, and although it can result in devastating consequences, it's done often enough that it feels routine, safe, and boring. Seatbelts are a good idea for drivers, but can be a bad idea for pedestrians and bikers. An experiment in which people drove go-karts showed that those who switched from an unencumbered ride to being strapped in safely responded by increasing their speed. Conversely, when Sweden switched the side of the road that people drove on - something that might lead to more accidents by confused or distracted motorists - the accident rate dropped. It only crept up again when drivers started to become accustomed to the change.
One of the main pieces of ammunition for proponents of risk compensation is a survey of British drivers. Truck and cab drivers readily admitted that if their vehicles were loaded with explosives they would drive more slowly. Gordon Tullock, an economist, once joked that if the government wanted people to drive safely, they'd mandate a spike in the middle of each steering wheel. Of course such a thing would never happen — nor should it, morally — but ensuring the person most in control of a situation will be damaged by their mistakes can lead to much safer behavior than ensuring that they'll be protected, even if others won't be. Everyone's careful not to incite a revolution if they know they'll be the first up against the wall.
Via SkyDiveNet, Pubmed, Risk by John Adams, and Injury Prevention.


text:
Products & Downloads
Fast Video Cataloger
Fast Video Cataloger is a video asset management system for Windows that lets video professionals catalog, search, and find video clips in seconds instead of hours. You will have an instant overview of your videos which allows you to quickly find the right video files.
Download the trial version and see how much faster you can work with videos.
Download for FREE today!
Fast Video Indexer
Fast Video Indexer for PC can save you tons of time if you are working with videos. The software will let you create index photos and web pages for you whole digital video library.
Test the Free trial version and discover if you are wasting time right now by not using Fast video indexer.
Download for FREE today!
Visit the
Fast Video Cataloger site
Visit the
Fast Video Indexer site
Visit the
Inzomia Viewer 3 site
Latest News
Fast video cataloger released
Visit the Fast video cataloger site at www.videocataloger.com to find out more about how you can work smarter and faster with videos and download the free trial version.
Read more...