Countdown to Basel II

With Basel II set for implementation in three years’ time, some banks in theregion are working hard to align their operational risk systems with therequirements outlined in the new Accord. Clive Davidson reports

Basel II has raised the profile of operational risk across the banking world.The proposed capital Accord outlines new methods for measuring capital to beheld against operational exposures, with the potential for banks to reduce thecapital requirements through better quantification and management of risks. Butoperational risk has always been present in the industry and over the years