Weary recognition of gross income as Basel II op risk measure

LONDON - There was "weary recognition" among bankers that the use of gross income as a measure of operational risk was the least bad approach, said Richard Metcalfe, co-head of the European office of the International Swaps and Derivatives Association (Isda). He was addressing the London OpRisk 2002 conference in January.

Metcalfe was participating in a panel debate on the framework of the op risk capital charge proposed under the Basel II bank capital adequacy accord. Isda is the trade organisation for the international financial risk management industry.

Insensitive measure
Panellists criticised the use of bank gross income as the basis for an op risk capital charge because of its insensitivity as a measure of the op risk actually faced by a bank.

Under proposals by the Basel Committee on Banking Supervision

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here