UK regulator publishes paper on the use test
LONDON – The Financial Services Authority (FSA) has published a paper Operational risk: the ‘use’ test.
The FSA notes in the paper, dated June 30, that after discussions with a variety of firms over the use test – which involves the use of the risk assessment and risk measurement systems established under the Capital Requirements Directive – it found some are having difficulty in demonstrating they have integrated their operational risk framework into their day-to-day risk management process and system.
The paper contains a number of questions firms might address to determine how well they have integrated the risk framework into their risk management processes. This relies on the regulatory requirements and guidance published by the Committee of European Banking Supervisors and a possible use test structure (and the components of that structure) for evaluation.
Click here for a copy of the paper:
More on Regulation
Huge losses will affect risk modelling and capital calculation
Complex investigations and delays in trials over index rigging
But cash variation margin restriction may upset the buy side
Rules on individual accountability will have big impact, say lawyers
Sign up for Risk.net email alerts
Watch highlights of this year's London conference
Operational risk and the challenges of defining and dealing with conduct risk
Watch discussions and speakers from our North America conference
In the February 2014 editorial video, OpRisk's latest industry survey finds room for improvement in risk management
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.