An overshooting is a one-day change in the portfolio's value that exceeds the related one-day value-at-risk measure generated by the institution's model.
situation in which there is a sharp increase in value of an asset followed by a slow adjustment to equilibrium, caused by a change in expectations.
The multiplication factor shall be increased by a plus-factor of between 0 and 1 in accordance with the following table, depending on the number of overshootings for the most recent 250 business days as evidenced by the institution's back-testing.
