EM: For calculating what the notes refer to as “individual provisions”, a formula or discounted cashflow model might be used. Implicit in this calculation is an assumed least-risk matching strategy, e.g. to discount cashflow with a risk-free yield curve, we implicitly assume we are matching with risk-free bonds. However, the total actual portfolio may look quite different. It may include credit assets and/or property. In such a case the actual portfolio carries more risk than the least-risk portfolio and additional provisions may have to be set up. In practice the least-risk portfolio would be derived with reference to the overall liability (sum of individual liabilities).