reserve the accord also provides for two methodologies that are more complex an u201c internal ratings u201d based approach and an u201c advanced u201d approach that is based on detail historical analysis a financial institution may prefer to use the more complex methodologies for example because they result in a less conservative capital reserve requirement that is more sensitive to the details of the risks associated with the credit it has extended to its customers however the more complex methodologies require recording of data and performing of calculations that may not be necessary for the standardized or more basic approaches and therefore an institution seeking to make use of the more complex methodologies may face relatively complicated modification of its internal record keeping and data analysis this difficulty may be exasperated by the operation of the institution in a number of relatively separate or independent business units as certain requirements relate to the institution as a whole rather than to specific business units and relatively high credit risk related to one business unit may be offset by low credit risk or high capital reserves in another business unit referring still to fig1 the financial institution 10 makes use of an ldm system 140 to analyze its compliance or possibility of compliance with regulations 118 such as compliance with basel ii note that the use of the term u201c ldm u201d which is an acronym for u201c logical data model u201d in.