Tweaks to standard op risk method not enough, experts warn

Basel Committee to integrate insurance and divestitures, but SMA still lacks forward-looking approach

Easy pickings: regulators focusing on "low-hanging fruit that require no fundamental change in thinking"

International regulators are picking the "low-hanging fruit" in their overhaul of the operational risk capital framework, say industry critics, rather than addressing the core problems with their initial proposal.

The Basel Committee released a proposal in March that removes the use of internal models in favour of a revised standardised measurement approach (SMA), prompting concerns around the lack of risk sensitivity and sharp increases in capital charges it could cause. Recent statements by

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