It’s been 20 months since the standardised measurement approach (SMA) for operational risk capital was proposed by the Basel Committee on Banking Supervision. But, despite much soul-searching by both banks and regulators, the method has still not been finalised.
A watered-down version of the original proposal is, at the time of writing, the likeliest successor to current approaches but, given its many flaws, the danger is it will create more problems than it solves. And a key problem the SMA ai
The week on Risk.net, December 2–8, 2017Receive this by email