The formula for calculation of the adjusted exposure after incorporating risk mitigation using the comprehensive approach is as follows:

E* = max {0, [E x (1 + He) — C x (1 - Hc - Hfx)]}, where:
E* = Adjusted exposure amount after risk mitigation
E = Exposure amount
He = Applicable add-on for exposure
C = The current value of underlying collateral
Hc = Applicable haircut for collateral
Hfx = Applicable haircut for foreign exchange exposure, in case exposure and collateral have dissimilar currencies