State Street's Kenny: Leaving AMA parallel run just the start
Leaving the advanced measurement approach parallel run was a milestone for State Street – but the lack of common objective standards is still holding back operational risk management as a discipline, fears David Kenny, global head of operational risk at State Street Global Markets
The Basel capital rules revolutionised the field of risk management, creating among other things the concept of 'operational risk' itself for the first time. But they fell well short of their more ambitious objectives. Most obviously, reaching the goal of pushing every major bank towards the advanced measurement approach (AMA), in order to match operational risk capital to the bank's exposure in as sophisticated a way as possible, proved to be a much longer and tougher process.
Almost as soon as
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