SMA data shortfalls ‘make op risk review a must’

New research adds to criticism of proposed op risk capital method

The Bank for International Settlements, Basel
The Bank for International Settlements, Basel
Photo: Ulrich Roth

Flaws in regulators' proposed new standard approach to operational risk capital requirements make it essential the framework is reviewed, a new research paper will argue. Patrick McConnell, a visiting fellow at Macquarie University's Applied Finance Centre in Sydney, says the standardised measurement approach (SMA) is too volatile and inconsistent to be practical.

McConnell is not the first to criticise the SMA. Since it was first mooted in October 2015, academics and practitioners have warned

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 or view our subscription options here:

You are currently unable to copy this content. Please contact 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 View our subscription options

If you already have an account, please sign in here.


Want to know what’s included in our free registration? 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 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