(33)The calculation of the Solvency Capital Requirement with the standard formula should reflect developments in risk management practices, in particular on the use of risk mitigation techniques. Insurance and reinsurance undertakings should therefore be able to take into account the effect of risk-mitigation techniques, including where those techniques are replaced with a similar arrangement when they expire or where those techniques are adjusted to reflect changes in the exposures covered, provided that such replacement or adjustment is limited to once per week. The standard formula should also allow for netting arrangements between derivatives and hedging strategies where several contractual arrangements together have the effect of a risk mitigation technique. Possible deviations between the risk mitigating effect reflected in the standard formula on the one hand and the actual risk mitigation effect on the other, and an assessment of basis risk, should be included in the undertakings own risk and solvency assessment.