Apra exec defends modifications
REGULATORY UPDATE
In the paper, the regulator dismisses both the basic indicator approach and the standardised approach as producing "wide variations in outcomes" among financial institutions "that cannot be tied readily to differences in operational risk". Instead, firms that do not adopt the advanced measurement approach will be forced to use the alternative standardised approach, in which the op risk capital charge is calculated as a percentage of the firm's assets.
The executive, Judy Lau, senior manager
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