Banks making big op risk advances, says Fitch

More than 70% of the world's major banks will have developed tools for monitoring operational risk indicators and will be using risk and control self assessments by 2007, according to rating agency Fitch.

Fitch surveyed 50 of the world’s largest financial institutions and concluded that the industry has come a long way in terms of establishing methodologies and processes to measure and manage operational risks in preparation for Basel II, the new capital adequacy rules currently slated to be in place by January 2007.

“Based on the survey results, it looks as if many of the global banking institutions are working hard to meet the data requirements of Basel II,” says Gordon Scott, managing