6.1 The PRA’s starting assumption will be that all overshootings should be taken into accountfor the purpose of the calculation of addends. If a firm believes that an overshooting should not count for that purpose, then it should contact the PRA in order to obtain its agreement to exclude that particular overshooting. The PRA will then decide whether to agree to such an exclusion.

6.2 One example of when a firm’s overshooting might properly be disregarded is when it has arisen as a result of a risk that is not captured in its VaR model, but against which capital resources are already held.