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
Strict classification of structured products into 'complex' and 'non-complex' criticised
SA-CCR is mooted successor to 27-year-old CEM, but sensitivity may count against it
Financial stability fears drive regulators to raise capital levels for banks
Global banks refusing to sign representation letters with regional players
Sign up for Risk.net email alerts
Sponsored video: Elseware
Oxford professor David Vines argues that the carrot is as important as the stick
Sponsored webinar: IBM
Watch highlights of this year's London conference
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.