The Standardized Approach for counterparty credit risk (SA-CCR) is the capital requirement framework under Basel III addressing counterparty risk. The SA-CCR exposure-at-default calculation drives a bank's regulatory capital calculations and is a measure of counterparty credit risk as it calculates the exposure at default (EAD) of derivative trades with counterparties. SA-CCR is calculated as if a counterparty were to default today as the current value of the trade plus an add-on which measures potential future exposure (PFE). The framework replaced both non-internal model approaches (non-IMA): the current exposure method (CEM) and the standardized method (SM).