### Question
How does the law define risk-based assessment system?


### Answer
Under *12 U.S.C. § 1817*, **risk-based assessment system** is defined as:

> a system for calculating a depository institution's semiannual assessment based on—


(i) the probability that the deposit insurance fund will incur a loss with respect to the institution, taking into consideration the risks attributable to—


(I) different categories and concentrations of assets

#### Citation:
  - *12 U.S.C. § 1817*
  - Heading: **CHAPTER 16-FEDERAL DEPOSIT INSURANCE CORPORATION**

